Question
Acme Materials Company manufactures and sells synthetic coatings that can withstand high temperatures. Its primary customers...
Acme Materials Company manufactures and sells synthetic coatings that can withstand high temperatures. Its primary customers are aviation manufacturers and maintenance companies. The following table contains financial information pertaining to cost of quality (COQ) in 2019 and 2020 (in thousands of dollars): 2019 $ 15,900 290 159 240 2020 $19,900 59 124 69 19 59 Sales Materials inspection In-process (production) inspection Finished product inspection Preventive equipment maintenance Scrap (net) Warranty repairs Product design engineering Vendor certification Direct costs of returned goods Training of factory workers Product testing-equipment maintenance Product testing labor Field repairs Rework before shipment Product-liability settlement Emergency repair and maintenance 490 690 149 21 265 39 59 200 290 440 260 59 79 139 59 89 69 39 230 350 199 59 190 74
Required: 1. Classify the cost items in the table into cost-of-quality (COQ) categories 2. Calculate the ratio of each COQ category to revenues in each of the 2 years. 3. Calculate the percentage change in each COQ category and total COQ and comment on the results: a. Percentage change in total COQ as a percentage of sales, from 2019 to 2020; b. Total COQ in 2020 expressed as a percentage of 2019 sales dollars; c. Percentage change in total prevention costs, 2019 to 2020; d. Percentage change in total appraisal costs, 2019 to 2020; e. Percentage change in total internal failure costs, 2019 to 2020; f. Percentage change in total external failure costs, 2019 to 2020.
Classify the cost items in the table into cost-of-quality (COD) categories. Calculate the ratio of each COQ category to revenues in each of the 2 years. (Enter amounts in thousands, not in whole dollar. Round your "Percentage" answers to 2 decimal places.) 2019 % of Sales 2020 % of Sales Amount Amount Cost of quality: Prevention costs: % Total prevention costs Appraisal costs: Total appraisal costs
Internal failure costs: Total internal failure costs External failure costs: % Total external failure costs Total cost of quality (COQ)
Answers
Refer a below image for the above asked question, in a detailed way of solution.
Solohon: table coa in the each into category Requirement: categories in each cost of quality to revenues classify the lost items calcolate the ratio of of the 2 years: 2020 2019 Amount particolars roof sales Amoont 1. of sales $ 15900 $ 19900 $19 Sales cost of goality : Prevention (ost1 preventive eapsipment maintenance vendor (extikcation Training of factory workers product design engineering Total prevention Cost & $ 24 $39 $ 149 Sa 59 $ 139 $ 260 317 .430. 2.601. $24 Appraisal costs Materials inspection 9२१० $59 production inspection $ 159 $ 424 finished product inspection € 240 Product desting equipment maintenance & 39 #59 product telking - bbor $ 200 Total Appraisal cost: $948 5.964 $400 2.011. Internal Failure costs: scrap (net) 490 $ 290 ReworIL (before shipment) $ 230 & 199 Emergency repars & maintenance & 24 Total internal failure costs: 1910 5.724. 563. 2.83- External Tailore costs: warranty repairs $690 & 440 Direct costs of returned goods $265 $ 79 Field repairs $ 39 product liablity Settlement 59 Toral external failure Cost : $1374 8.644. & 617 3.10% Total cost of Quality : $2097 10.54 $3460 21.767 190 $ 69 $350 (COQ)
Similar Solved Questions
1 answers
A City reported outstanding long-term debt of $ 1,750,000 at the beginning of its calendar year...
A City reported outstanding long-term debt of $ 1,750,000 at the beginning of its calendar year 2015. During the year, the City sold $ 850,000 of debt to acquire capital assets and repaid $ 450,000 of debt that was outstanding at the beginning of the year. Prepare journal entries needed to adjust th...
1 answers
Question 1 - Interest & loan Sue will need $120,000 to refurbish her house at the...
Question 1 - Interest & loan Sue will need $120,000 to refurbish her house at the corner of a main road into a cake shop in 5 years. She has a saving account which earn 3.47% p.a, compounding quarterly and she is able to deposit $800 into that account at the end of each month for 5 years. a) Wil...
1 answers
Kasey Corp. has a bond outstanding with a coupon rate of 5.98 percent and semiannual payments....
Kasey Corp. has a bond outstanding with a coupon rate of 5.98 percent and semiannual payments. The bond has a yield to maturity of 5.5 percent, a par value of $2,000, and matures in 18 years. What is the quoted price of the bond?...
1 answers
Construct the indicated confidence interval for the population mean mu using the t-distribution. Assume the population...
Construct the indicated confidence interval for the population mean mu using the t-distribution. Assume the population is normally distributed. C= 0.99 , X= 14.7 S = 4.0 , N= 9 ; C= 0.98 , X= 12.6 S = .89 , N= 19...
1 answers
A current i flows into (and, on the other side, out of) a paralle-plate capacitor. The...
A current i flows into (and, on the other side, out of) a paralle-plate capacitor. The plates are circular, spaced 0.0010 m apart, and have an area of 0.785m2. The voltage across the capacitor changes at 1.0 kV/s, causing a magnetic field to be induced in the capacitor, parallel to the plates. (a) F...
1 answers
An aqueous salt solution is formed by adding 61.65 g Iron (III) nitrate (solute) to water...
An aqueous salt solution is formed by adding 61.65 g Iron (III) nitrate (solute) to water (solvent). What mass (in g) of water is used if the freezing point of the solution is -11.8 oC. Kf H2O = 1.86 oC/m...
1 answers
Planet X has 20 times the mass of the earth and 3 times the earth's radius....
Planet X has 20 times the mass of the earth and 3 times the earth's radius. It orbits star Y at a distance of 8 AU, where 1 AU is the earth-sun distance. Star Y has twice the mass of our sun. (a) What is the orbital period of Planet X in years? (b) An astronaut has an earth weight of 120 lbs. Wh...
1 answers
1) Consider a (15,5) linear block code (cyclic) in systematic form. The generator polynomial is given...
1) Consider a (15,5) linear block code (cyclic) in systematic form. The generator polynomial is given as. g(x) = 1 + x + x2 + x5 + x + x10. a. Design and draw the circuit of the feedback shift register encoder and decoder.(6 Marks) b- Use the encoder obtained in part a to find the code word for the ...
1 answers
5) An engineer deposits $500 per month into an account that pays 6% interest per year...
5) An engineer deposits $500 per month into an account that pays 6% interest per year semi-annually (2 times a year). How much will be in the account at the end of 10 years? Assume no interperiod. a. d) 80,611 b. a) 60.029 c. b) 70,250 od.c) 75,890 QUESTION 6 6) What effective annual interest rate i...
1 answers
A. Find the quartic equation describing the model. Round to three decimal places. b. Complete the...
a. Find the quartic equation describing the model. Round to three decimal places. b. Complete the table provided with the predicted oil imports from OPEC, and the error. Use the unrounded model. c. Find the average error for the model. Use the unrounded model. d. The scatter plot of the data is show...
1 answers
How do you find the important points to graph #f(x)=2x^2#?
How do you find the important points to graph #f(x)=2x^2#?...
1 answers
Firms with high P/E ratios earned higher average returns than firms with low P/E ratios earned...
Firms with high P/E ratios earned higher average returns than firms with low P/E ratios earned the same average returns as firms with low P/E ratios earned lower average returns than firms with low P/E ratios had higher dividend yields than firms with low P/E ratios...
1 answers
What is the enthalpy (kJ/kg) of refrigerant 134a which is at 4C and quality 40%? Select...
What is the enthalpy (kJ/kg) of refrigerant 134a which is at 4C and quality 40%? Select one: a. h = 204.57 kJ/kg. O b. h=96.35 kJ/kg. O c. h = 135.46 kJ/kg. O d. h = 115.90 kJ/kg. O e. h = 155.02 kJ/kg. A car (1000 kg) climbs up a hill sloped at 28° while traveling at constant speed of 80 km/hr,...
1 answers
Actual indirect materials costs Actual indirect labor costs Other overhead costs Overhead applied Storm Concert Promotions...
Actual indirect materials costs Actual indirect labor costs Other overhead costs Overhead applied Storm Concert Promotions $12,000 56,800 16,700 92,000 Valle Home Builders $ 7,300 46,500 49,000 98,300 Storm Concert Promotions Determine whether overhead is overapplied or underapplied. Prepare the jou...
1 answers
Which of the following graph algorithms is designed specifically to accept negative edge weights? Check all...
Which of the following graph algorithms is designed specifically to accept negative edge weights? Check all that apply. a. topological sort b. Dijkstra's algorithm c. Bellman-Ford algorithm d. unweighted shortest path algorithm...
1 answers
If I know the initial velocity, the launcher angle, the initial height what formula would I...
If I know the initial velocity, the launcher angle, the initial height what formula would I use to find where the ball should land?...
1 answers
Please use the following formulas to solve for XL and θ in the above table (...
Please use the following formulas to solve for XL and θ in the above table ( please show all steps) IDI DIO 0-5V ±10V 0- Li RL R1 133mh 120Ω| 1kΩ +15V IN Calculated f(kHz) X, (20 (dearee ) 0.5 4 We were unable to transcribe this image2.5L0'v...
1 answers
Show My Work optionab ? 8. -12 points SerPSE9 2.P.028.W A truck covers 30.0 m in...
Show My Work optionab ? 8. -12 points SerPSE9 2.P.028.W A truck covers 30.0 m in 8.60 s while smoothly slowing down to final speed of 2.90 m/s. (a) Find its original speed. m/s (b) Find its acceleration. (Indicate the direction of the acceleration with the sign of your answer.) m/s2 Read It a Show M...