Pareto chart obj. 3 Silicon Solutions Inc. manufactures RAM memory chips for personal computers. An activity analysis

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Pareto chart obj. 3 Silicon Solutions Inc. manufactures RAM memory chips for personal computers. An activity analysis was conducted, and the following activity costs were identified with the manufacture and sale of memory chips:

Activities Activity Cost Correct shipment errors $ 144,000 Disposing of scrap 90,000 Emergency equipment maintenance 99,000 Employee training 36,000 Final inspection 81,000 Inspecting incoming materials 54,000 Preventive equipment maintenance 27,000 Processing customer returns 90,000 Scrap reporting 36,000 Supplier development 9,000 Warranty claims 234,000 Total $900,000 Prepare a Pareto chart of these activities.

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Related Book For  book-img-for-question

Financial And Managerial Accounting

ISBN: 9781305267831,9781305267848

13th Edition

Authors: Carl S. Warren , James M. Reeve , Jonathan Duchac

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