Interim Quality Performance Report Davis, Inc., had the following quality costs for the years ended December...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Interim Quality Performance Report Davis, Inc., had the following quality costs for the years ended December 31, 20x4 and 20x5: 20x4 Prevention costs: Quality audits Vendor certification Appraisal costs: Product acceptance Process acceptance Internal failure costs: Retesting Rework External failure costs: Recalls Warranty $70,000 115,500 $84,000 95,000 $92,000 200,000 $140,000 340,000 20x5 $105,000 173,250 $126,000 100,000 $90,000 170,000 $112,000 290,000 At the end of 20x4, management decided to increase its investment in control costs by 50 percent for each category's items with the expectation that failure costs would decrease by 20 percent for each item of the failure categories. Sales were $11,000,000 for both 20x4 and 20x5. Required: 1. Calculate the budgeted costs for 20x5. $ Prepare an interim quality performance report. Enter all answers as positive amounts. If there is no variance enter "0" for your answer. If the budget variance amount is unfavorable select "Unfavorable" in the last column of the table, select "Favorable" if it is favorable, or No effect if there is no change. Round percentage answers to two decimal places. For example, 5.789% wou be entered as "5.79". Prevention costs: Total prevention costs Appraisal costs: Total appraisal costs ▼ ▼ Davis, Inc. Interim Standard Performance Report: Quality Costs For the Year Ended December 31, 20x5 Budgeted Costs Variance Actual Costs $ $ Unfavorable, Favorable or No effect Internal failure costs: Total internal failure costs External failure costs: Total external failure costs. Total quality costs Percentage of sales $ % 1000 2. What can be inferred from the report regarding the progress Davis has made? 3. What if sales were $11,000,000 for 20x4 and $13,750,000 for 20x5? What adjustment to budgeted rework costs would be made? (Note: Quality auditing is a discretionary cost and its budget is not affected by the change sales revenue in 20x5.) New total budgeted rework costs: Interim Quality Performance Report Davis, Inc., had the following quality costs for the years ended December 31, 20x4 and 20x5: 20x4 Prevention costs: Quality audits Vendor certification Appraisal costs: Product acceptance Process acceptance Internal failure costs: Retesting Rework External failure costs: Recalls Warranty $70,000 115,500 $84,000 95,000 $92,000 200,000 $140,000 340,000 20x5 $105,000 173,250 $126,000 100,000 $90,000 170,000 $112,000 290,000 At the end of 20x4, management decided to increase its investment in control costs by 50 percent for each category's items with the expectation that failure costs would decrease by 20 percent for each item of the failure categories. Sales were $11,000,000 for both 20x4 and 20x5. Required: 1. Calculate the budgeted costs for 20x5. $ Prepare an interim quality performance report. Enter all answers as positive amounts. If there is no variance enter "0" for your answer. If the budget variance amount is unfavorable select "Unfavorable" in the last column of the table, select "Favorable" if it is favorable, or No effect if there is no change. Round percentage answers to two decimal places. For example, 5.789% wou be entered as "5.79". Prevention costs: Total prevention costs Appraisal costs: Total appraisal costs ▼ ▼ Davis, Inc. Interim Standard Performance Report: Quality Costs For the Year Ended December 31, 20x5 Budgeted Costs Variance Actual Costs $ $ Unfavorable, Favorable or No effect Internal failure costs: Total internal failure costs External failure costs: Total external failure costs. Total quality costs Percentage of sales $ % 1000 2. What can be inferred from the report regarding the progress Davis has made? 3. What if sales were $11,000,000 for 20x4 and $13,750,000 for 20x5? What adjustment to budgeted rework costs would be made? (Note: Quality auditing is a discretionary cost and its budget is not affected by the change sales revenue in 20x5.) New total budgeted rework costs:
Expert Answer:
Answer rating: 100% (QA)
Solution 1 Davis Inc Interim Standard Performance Report Quality ... View the full answer
Related Book For
Cornerstones of Cost Management
ISBN: 978-1111824402
2nd edition
Authors: Don R. Hansen, Maryanne M. Mowen
Posted Date:
Students also viewed these accounting questions
-
Davis, Inc., had the following quality costs for the years ended December 31, 2014 and 2015: At the end of 2014, management decided to increase its investment in control costs by 50 percent for each...
-
Davis, Inc., had the following quality costs for the years ended December 31, 2012 and 2013: At the end of 2012, management decided to increase its investment in control costs by 50 percent for each...
-
Andresen Company had the following quality costs for the years ended June 30, 20X1 and 20X2: At the end of 20X1, management decided to increase its investment in control costs by 50% for each...
-
1 of 4 Set 1 UIBS United International Business Schools Class Work Mergers and Acquisitions 1. Rudy's, Inc. and Blackstone, Inc. are all-equity firms. Rudy's has 1,500 shares outstanding at al market...
-
For each of the following transactions, indicate the effect on the basic accounting equation (assets = liabilities + shareholder's equity): a. Issuance of shares for cash b. Purchase of land for cash...
-
Find proj v u and scal v u by inspection without using formulas.
-
MLimited has an authorised share capital of 1,500,000 divided into 1,500,000 ordinary shares of 1 each. The issued share capital at 31 March 2020 was 500,000 which was fully paid, and had been issued...
-
A major source of revenue in Texas is a state sales tax on certain types of goods and services. Data are compiled and the state comptroller uses them to project future revenues for the state budget....
-
Ch 15 HW i 3 ! Part 3 of 5 5 points Saved Required information [The following information applies to the questions displayed below.] Mason (single) is a 50 percent shareholder in Angels Corporation...
-
ATV Co. began operations on March 1 and uses a perpetual inventory system. It entered into purchases and sales for March as shown in the Tableau Dashboard. Legend No Purchases or Sales Purchases...
-
As we discuss our Week One Topic: Consider that McGregor's theory may have a connection to an organization's culture and the ethical behavior (Tsahuridu, 2017). The way that managers and employees...
-
Why do organizations need policies to govern the disposition of electronic mail that their employees may receive?
-
Give two controls that might be exercised to determine whether online output should be accepted.
-
The ease with which backup and recovery of output can be accomplished depends upon whether the output shows status information or transaction information. Briefly explain.
-
What is a generalized audit software package?
-
List the five major steps needed to use a random number table. Explain how each step would be performed to select 15 accounts for confirmation from a listing of eight pages of accounts receivable...
-
X-cell Inc. began operations on December 1, 2014. The transactions for the first month follow. a. X-cell Inc. issued shares to shareholders for $55,000. b. X-cell Inc. performed consulting services...
-
As long as we can't lose any money, we have a risk-free investment." Discuss this comment. Q2: Both investing and gambling can be defined as "undertaking risk in order to earn a profit." Explain how...
-
1. Weighted average and first-in, first-out (FIFO) equivalent units would be the same in a period when which of the following occurs? a. No beginning inventory exists. b. No ending inventory exists....
-
Haysbert Company provides management services for apartments and rental units. In general, Haysbert packages its services into two groups: basic and complete. The basic package includes advertising...
-
Mossfort, Inc., has a division in Canada that makes long-lasting exterior wood stain. Mossfort has another U.S. division, the Retail Division, that operates a chain of home improvement stores. The...
-
Question: The stock market crash of 1929 and the Great Depression that followed were caused in part because so many investors blindly put their money into stocks they knew nothing about. During the...
-
Question: Bill and Diane are hiking in the woods. Diane walks down a hill to fetch fresh water. Bill meets a stranger, who introduces herself as Katrina. Bill sells a kilo of cocaine to Katrina, who...
-
Strategy: Look at the ethics checklist. Citizens of China are stakeholders of American companies. Although it is legal to buy fabric from a company that is polluting overseas, this is surely...
Study smarter with the SolutionInn App