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Activity-Based Quality Costing Ivanov, Inc., produces two different generators and is concerned about their quality. The company has identified the following quality activities and
Activity-Based Quality Costing Ivanov, 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 165,500 344,600 Warranty work (units) 1,730 820 Scrapped units (number) 3,400 780 Inspection (hours) 3,370 1,700 Quality training (hours) 88 88 Activities: Performing warranty work $821,100 Scrapping units 593,560 Inspecting 278,850 88,880 Quality training 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. Unit cost Generator A Generator B Which of the two seems to have the lowest quality? Generator A
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