Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

4 1.07/1.09 points awarded Scored Problem 8-39 Quality Costs: Identification and Analysis (LO 8-7) Advanced Technologies (AT) produces two compression machines that are popular

image text in transcribedimage text in transcribed

4 1.07/1.09 points awarded Scored Problem 8-39 Quality Costs: Identification and Analysis (LO 8-7) Advanced Technologies (AT) produces two compression machines that are popular with manufacturers of plastics: no. 165 and no. 172. Machine no. 165 has an average selling price of $30,100, whereas no. 172 typically sells for approximately $27,700. The company is very concerned about quality and has provided the following information: Number of machines produced and sold Warranty costs: Average repair cost per unit Percentage of units needing repair Reliability engineering at $155 per hour Rework at AT's manufacturing plant: Average rework cost per unit Percentage of units needing rework Manufacturing inspection at $40 per hour Transportation costs to customer sites to fix problems Quality training for employees No. 165 170 No. 172 200 2,010 hours $ 910 $ 360 70% 1,605 hours 10% $ 1,910 $ 1,600 30% 310 hours $15,200 $29,700 $35,100 30% 510 hours $50,100

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial and Managerial Accounting

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

12th edition

978-1133952428, 1285078578, 1133952429, 978-1285078571

More Books

Students also viewed these Accounting questions