Question
13.14.13 Roen Company incurred an activity cost of $111,100 for inspecting 44,800 units of production. Management determined that the inspecting objectives could be met without
13.14.13
Roen Company incurred an activity cost of $111,100 for inspecting 44,800 units of production. Management determined that the inspecting objectives could be met without inspecting every unit. Therefore, rather than inspecting 44,800 units of production, the inspection activity was limited to a random selection of 5,600 units out of the 44,800 units of production.
Determine the inspection activity cost per unit on 44,800 units of total production both before and after the improvement. Do not round intermediate calculations. If required, round per unit amounts to the nearest cent.
Inspection activity before improvement: | $fill in the blank 2 | per unit |
Inspection activity after improvement: | $fill in the blank 3 | per unit |
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A quality control activity analysis indicated the following four activity costs of The Roen hotel:
Inspecting cleanliness of rooms $270,900 Processing lost customer reservations 90,300 Rework incorrectly prepared room service meal 361,200 Employee training 180,600 Total $903,000 Prepare a cost of quality report. Round the percents of total quality cost to the nearest whole number and the percents of total sales to one decimal place.
Cost of Quality Report Quality Cost Classification Quality Cost Percent of Total Quality Cost Percent of Total Sales Prevention $fill in the blank 2 fill in the blank 3% fill in the blank 4% Appraisal fill in the blank 5 fill in the blank 6% fill in the blank 7% Internal failure fill in the blank 8 fill in the blank 9% fill in the blank 10% External failure fill in the blank 11 fill in the blank 12% fill in the blank 13% Total $fill in the blank 14 fill in the blank 15% fill in the blank 16%
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