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Activity-Based Quality Costing Abernathy, Inc., produces two different generators and is concerned about their quality. The company has identified the following quality activities and costs
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Activity-Based Quality Costing
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 161,600 343,000 Warranty work (units) 1,800 820 Scrapped units (number) 3,430 800 Inspection (hours) 3,380 1,730 Quality training (hours) 82 82 Activities: Performing warranty work $841,020 Scrapping units 600,660 Inspecting 306,600 Quality training 81,836 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 $ $ Which of the two seems to have the lowest quality?
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