HomeNeat, Co. has two division that produce Napkins and Towels. The manager of HomeNeat, Co. just...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
HomeNeat, Co. has two division that produce Napkins and Towels. The manager of HomeNeat, Co. just received data for preparing quality cost report as per Dec 31, 2021, as follows: Napkins ($) Towels ($) Product liability 7,500 1,000 Quality reporting Scrap 1,000 7,500 500 1,000 12,000 3,000 Allowances 5,000 Inspection of materials Downtime 2,000 1,200 4,000 Quality training Quality audits Product acceptance 2,300 12,000 2,500 2,000 1,500 7,000 Rework 2,500 1,000 Customer complaints Quality engineering Process acceptance 5,750 4,000 3,750 3,500 1,000 1,000 Required: 1. Assume that sales revenue for Napkins Division is $600,000 and Towels is $1,000,000. Prepare quality cost report for both divisions for Dec 31, 2021. Report should consist of relative distribution of cost for each quality cost category. 2. Refer to question 1, which division performed better in managing cost of quality. Give your analysis. 3. The CFO want to reduce the quality cost to no more than 5%, do you think both divisions can achieve the CFO's target? If yes, how? HomeNeat, Co. has two division that produce Napkins and Towels. The manager of HomeNeat, Co. just received data for preparing quality cost report as per Dec 31, 2021, as follows: Napkins ($) Towels ($) Product liability 7,500 1,000 Quality reporting Scrap 1,000 7,500 500 1,000 12,000 3,000 Allowances 5,000 Inspection of materials Downtime 2,000 1,200 4,000 Quality training Quality audits Product acceptance 2,300 12,000 2,500 2,000 1,500 7,000 Rework 2,500 1,000 Customer complaints Quality engineering Process acceptance 5,750 4,000 3,750 3,500 1,000 1,000 Required: 1. Assume that sales revenue for Napkins Division is $600,000 and Towels is $1,000,000. Prepare quality cost report for both divisions for Dec 31, 2021. Report should consist of relative distribution of cost for each quality cost category. 2. Refer to question 1, which division performed better in managing cost of quality. Give your analysis. 3. The CFO want to reduce the quality cost to no more than 5%, do you think both divisions can achieve the CFO's target? If yes, how?
Expert Answer:
Answer rating: 100% (QA)
QUALITY COST PREVENTION COST APPRAISAL COST INTERNAL FAILURE COST EXTERNAL FAILURE COST NAPKINS OF S... View the full answer
Related Book For
Basic Business Statistics Concepts and Applications
ISBN: 978-0132168380
12th edition
Authors: Mark L. Berenson, David M. Levine, Timothy C. Krehbiel
Posted Date:
Students also viewed these accounting questions
-
Refer to Question C:14-7. Which taxpayer (the trust, Irene, or Beth) pays the tax on the gain? Question C:14-7 A trust instrument provides that, for life, Irene is entitled to receive distributions...
-
Rework Problems 1 and 2 assuming that you buy 750 shares of the stock and the ending share price is $68.40.
-
Assume that your college president has received many student complaints about campus parking problems. You are appointed to chair a student committee organized to investigate the problems and...
-
Brandon Stroud was driving a golf car made by Textron, Inc., to transport guests at Christmas party. The golf car did not have lights, but Textron did not warn against using it on public roads at...
-
Preston Chemical has spent $243,000 to refine 73,000 L of acetone, which can be sold for $2.00/L. Alternatively, Preston Chemical can process the acetone further to yield a total of 58,000 L of...
-
Explain how CAT bonds work.
-
Develop your key relations chart for this chapter. Remember that a key relations chart is not a core dump but is selective.
-
Refer to the data in Exercise 6-31. The president of Tiger Furnishings is confused about the differences in costs that result from using direct labor costs and machine-hours. Required a. Explain why...
-
What does net present value measure? kindly describe a real-life situation or circumstance where a company might forego a positive net present value project? As an alternative -- give an example of a...
-
Arcadia, Inc., acquired 100 percent of the voting shares of Bruno Company on January 1, 2023. In exchange, Arcadia paid $198,000 in cash and issued 100,000 shares of its own $1 par value common...
-
Fifteen years ago, the Food Pantry bought a new building for $600,000. It borrowed $500,000 on a 30-year mortgage with a 6 percent fixed rate and monthly payments. The current outstanding balance on...
-
How did they get the credit sales and opportunity cost? Credit Sales Cost of Goods Sold (81.98 % of sales ) Gross Margin Additional Marketing Cost the new credit policy (assuming 1% of credit sales)...
-
Simplify the following expression completely: (-4w15) 4 Answer:
-
B Ltd a US firm had exports to C Ltd a UK firm in year 2016 for 10M payable in 1 year. The interest and exchange rates applicable were as follows: US interest rates 6.1% UK interest rates 9.0% Spot...
-
Billie owns a high-end home theater speaker system, which she bought 2 years ago for $2236. Unfortunately, the speaker system was stolen last week, but Billie has a renter's insurance. What is the...
-
Find the equilibrium points for the system x'= 10(y - x) y'= 28x - y-xz 8 z' = - -z+xy 3 One of the equilibrium points will have all positive coordinates. Those coordinates are: x= y = x =
-
11. A province-wide sample survey is to be made. First, the province is subdivided into counties. Seven counties are selected at random and further sampling is concentrated on these seven counties....
-
State whether each statement is true or false. If false, give a reason. {purple, green, yellow} = {green, pink, yellow}
-
The business problem facing the director of broadcasting operations for a television station was the issue of standby hours (i.e., hours in which unionized graphic artists at the station are paid but...
-
In Problem 14.8 on page 584, you used land area of a property and age of a house to predict appraised value (stored in GlenCove). Use the results from that problem. a. Construct a 95% confidence...
-
Between 1896 when the Dow Jones Index was created and 2009, the index rose in 64% of the years (data extracted from M. Hulbert, "What the Past Can't Tell Investors," The NewYork Times, January 3,...
-
What is moral hazard?
-
What is adverse selection?
-
In the market for insurance, the moral hazard problem leads a. those most likely to collect on insurance to buy it. b. those who buy insurance to take fewer precautions to avoid the insured risk. c....
Study smarter with the SolutionInn App