(Cost of quality) Chelsea Sunglasses Company has gathered the following in formation pertaining to quality costs of...

Question:

(Cost of quality) Chelsea Sunglasses Company has gathered the following in¬ formation pertaining to quality costs of the production of heavy-duty sun¬ glasses for skiing for June 2006:

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Using these data, calculate the following:

a. Total cost to rework

b. Profit lost from not reworking all defective units

c. Cost of processing customer returns

d. Total failure costs

e. Total quality cost LO.1

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Cost Accounting Foundations And Evolutions

ISBN: 9780324235012

6th Edition

Authors: Michael R. Kinney, Jenice Prather-Kinsey, Cecily A. Raiborn

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Question Posted: Jun 27, 2024 02:19 AM

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(Cost of quality) Chelsea Sunglasses Company has gathered the following in formation pertaining to quality costs of...

Question:

Total defective units Number of units reworked Number of units returned 580 380 100 Total prevention cost $24,000 Total appraisal cost $12,000 Per-unit profit for defective units $20 Per-unit profit for good units $56 Cost to rework defective units Cost to handle returned units $16 $10

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Cost Accounting Foundations And Evolutions

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