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Abernathy, Inc., produces two different generators and is concerned about their quality. The company has identified the following quality activities and costs associated with the
Abernathy, Inc., produces two different generators and is concerned about their quality. The company has identified the following quality activities and costs associated with the two products:
Generator A | Generator B | |
Units produced | 160,100 | 341,200 |
Warranty work (units) | 1,750 | 790 |
Scrapped units (number) | 3,390 | 860 |
Inspection (hours) | 3,400 | 1,670 |
Quality training (hours) | 86 | 86 |
Activities: | ||
Performing warranty work | $800,100 | |
Scrapping units | 599,250 | |
Inspecting | 329,550 | |
Quality training | 86,344 |
Required:
1. Calculate the quality cost per unit for each product, and break this unit cost into quality cost categories. If required, round your answers to the nearest cent.
Generator A | Generator B | |
Unit cost | $ | $ |
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