Question Details
(Answered)-Robbie of Steam Inc has been concerned about the growth in costs
Robbie of Steam Inc has been concerned about the growth in costs over the last several years.? Robbie asked the controller to perform an activity analysis to gain a better insight into these costs.? The activity analysis revealed the following:
?
????????????Activity????????????????????????????????????????????????????????????????????????????????????Activity Cost???
Correcting invoice errors (invoices have been printed-not?mailed)??????$15,000
Disposing of scrap?(defective units) ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ??? 39,000
Shipping late production with Federal Express (at company?s cost)? ???33,000
Final inspection? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?20,000
Inspecting work in?process??????????????????????????????????????????? ? ? ? ? ? ? ? ? ? ? ? ???30,000
Preventative machine maintenance? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?? 18,000
Responding to customer quality?complaints??????????????????????????????????????????18,000
????????????Total????????????????????????????????????????????????????????????????????????????????????????$173,000
?Using this information prepare a cost of quality report (as suggested by the template below).? Assume sales for the period were $700,000.
?
? Quality Cost Classification | ? Quality Cost | ? Percent of Total quality cost | ? Percent of total Sales |
? | ? | ? | ? |
? | ? | ? | ? |
? | ? | ? | ? |
? | ? | ? | ? |
| ? | ? | ? |
?
Quality Cost
Quality Cost
Percent of Total quality cost
Classification
Prevention
$18,000
9.8%
Appraisal
$50,000
3.3%
Internal Failure
$54,000
3.3%
External Failure
$51,000
3.5%
Total
$173,000...
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This question was answered on: Oct 07, 2020
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STATUSAnswered
QUALITYApproved
DATE ANSWEREDOct 07, 2020
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