In response to intensive foreign competition, the management of Florex Company has attempted over the past...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
In response to intensive foreign competition, the management of Florex Company has attempted over the past year to improve the quality of its products. A statistical process control system has been installed and other steps have been taken to decrease the amount of warranty and other field costs, which have been trending upward over the past several years. Costs relating to quality and quality control over the last two years are given below: Inspection Quality engineering Depreciation of test equipment Rework labor Statistical process control Cost of field servicing Supplies used in testing Systems development Warranty repairs Net cost of scrap Product testing Product recalls Disposal of defective products Costs (in thousands) Last Year This Year $ 1,008 $ 756 $ 210 $ 1,260 $ 294 $ 1,092 $ 42 $ 840 $ 1,344 $ 1,050 $ 1,680 $ 1,008 $ 840 $ 630 $ 420 $ 588 $ 1,050 $ 0 $ 1,260 $ 42 $ 840 $ 4,200 $ 420 $ 840 $ 2,520 $ 630 Sales have been flat over the past few years, at $84,000,000 per year. A great deal of money has been spent in the effort to upgrade quality, and management is anxious to see whether or not the effort has been effective. Required: 1. Prepare a quality cost report that contains data for both this year and last year. (Enter amount values in thousands. Round your percentage answers to 2 decimal places (i.e 0.1234 should be entered as 12.34).) Florex Company Quality Cost Report Last Year This Year Amount (in Percent of Amount (in Sales Percent of Sales thousands) thousands) Prevention costs: Total prevention costs 0.00 0.00 Appraisal costs Total appraisal costs 0.00 0.00 Internal failure costs: Total internal failure costs 0.00 0.00 External failure costs: Total external failure costs 0.00 0.00 Total quality cost In response to intensive foreign competition, the management of Florex Company has attempted over the past year to improve the quality of its products. A statistical process control system has been installed and other steps have been taken to decrease the amount of warranty and other field costs, which have been trending upward over the past several years. Costs relating to quality and quality control over the last two years are given below: Inspection Quality engineering Depreciation of test equipment Rework labor Statistical process control Cost of field servicing Supplies used in testing Systems development Warranty repairs Net cost of scrap Product testing Product recalls Disposal of defective products Costs (in thousands) Last Year This Year $ 1,008 $ 756 $ 210 $ 1,260 $ 294 $ 1,092 $ 42 $ 840 $ 1,344 $ 1,050 $ 1,680 $ 1,008 $ 840 $ 630 $ 420 $ 588 $ 1,050 $ 0 $ 1,260 $ 42 $ 840 $ 4,200 $ 420 $ 840 $ 2,520 $ 630 Sales have been flat over the past few years, at $84,000,000 per year. A great deal of money has been spent in the effort to upgrade quality, and management is anxious to see whether or not the effort has been effective. Required: 1. Prepare a quality cost report that contains data for both this year and last year. (Enter amount values in thousands. Round your percentage answers to 2 decimal places (i.e 0.1234 should be entered as 12.34).) Florex Company Quality Cost Report Last Year This Year Amount (in Percent of Amount (in Sales Percent of Sales thousands) thousands) Prevention costs: Total prevention costs 0.00 0.00 Appraisal costs Total appraisal costs 0.00 0.00 Internal failure costs: Total internal failure costs 0.00 0.00 External failure costs: Total external failure costs 0.00 0.00 Total quality cost
Expert Answer:
Answer rating: 100% (QA)
Answon NO fant yean Curent year Tarticulan Amouil in ood o... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
Students also viewed these accounting questions
-
In response to intensive foreign competition, the management of Florex Company has attempted over the past year to improve the quality of its products. A statistical process control system has been...
-
In response to intensive foreign competition, the management of Florex Company has attempted over the past year to improve the quality of its products. A statistical process control system has been...
-
A quality control effort is being attempted for a process where large steel plates are being manufactured and surface defects are of concern. The goal is to set up a quality control chart for the...
-
An unknown compound A of molecular formula of C10H180 reacts with H2S04 and heat to form two compounds (B and C) of molecular formula C10H16. B and C both react with H2 over Pd/C to form decalin....
-
Use the Townlynn Corporation data in E10-35B to prepare the stockholders equity section of the companys balance sheet at December 31, 2015. In E10-35B, At December 31, 2014, Townlynn Corporation...
-
For the data in Problem 1, what is the differential return if the market return is 13%, the standard deviation of return is 5%, and standard deviation is the appropriate measure of risk? In Problem 1...
-
Why do \(\mathrm{H}_{\mathrm{OG}}\) and \(\mathrm{H}_{\mathrm{OL}}\) vary more than \(\mathrm{H}_{\mathrm{L}}\) and \(\mathrm{H}_{\mathrm{G}}\), which often vary by about \(10 \%\) ?
-
Pacelli Company issued 10-year, 10% bonds with a par value of $1,000,000 on January 2, 2010, for $940,000. Interest is paid semiannually on June 30 and December 31. On December 31, 2011, $800,000 of...
-
The Andreotti familycomprising Mrs. Andreotti, aged 40, Mr. Andreotti, aged 38, and their three young children relocated to Barcelona in January 2020 when Mrs. Andreotti received a job offer from a...
-
The proposed rates were not in the range the CEO expected given the pricing analysis. The CEO has asked the pricing actuary to verify the total projected loss cost excluding potential large storm...
-
Kelp Company produces three joint products from seaweed. At the split-off point, three basic products emerge: Sea Tea, Sea Paste, and Sea Powder. Each of these products can either be sold at the...
-
The Warrenburg Antique Mall expects to make purchases of direct material in the first quarter of 2024 as shown. Purchases in December 2023 are expected to be $92,000. The company expects that 60...
-
Based on the above creative & article write the creative brief that you feel the campaign is based on. Remember the creative brief comes BEFORE the campaign is develop and needs to be worded as so....
-
The expectation of market returns is 20%, the standard deviation is 25%. The risk-free rate is 7%. Security i is on the efficient frontier, it has an expectation of 30%, what is the standard...
-
A random sample was selected from a population having a normal distribution. Calculate a 95% confidence interval estimate for population for each of the following situations: (a) (2 marks) = 13.4, n...
-
Product Profitability Analysis Galaxy Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVS), the Conquistador and Hurricane, from a single manufacturing facility. The...
-
What was the opening price of Dow Jones Industrial Average on Apr 06, 2018 in the format of XXXXX.XX? Answer: 24373.60
-
Using Gauss-Jordan elimination, invert this matrix ONLY 0 0 0 0 1
-
You have recently accepted a position with Vitex, Inc., the manufacturer of a popular consumer product. During your first week on the job, the vice president has been favorably impressed with your...
-
Refer to the data for the Fare Publishing Company in Exercise 4B3. Required: Assuming that the company uses the direct method rather than the step-down method to allocate service department costs,...
-
The questions in this exercise are based on Target Corporation. To answer the questions, you will need to download Targets 2004 annual report (the companys fiscal year ended on January 29, 2005) at...
-
Assume that you have 890 total equivalent units of materials and 863 total equivalent units of conversion costs. Also assume that your beginning inventory is composed of \($3,390\) of materials and...
-
Assume that you have completed and transferred 800 units out of your department during the period and that you have determined your average cost per equivalent unit of direct materials to be...
-
Assume that your ending inventory is composed of 90 equivalent units of materials and 63 equiva- lent units of conversions costs and that you have determined your average cost per equivalent unit of...
Study smarter with the SolutionInn App