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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 costs
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 162,800 346,500 Warranty work (units) 1,710 780 Scrapped units (number) 3,400 860 Inspection (hours) 3,350 1,660 Quality training (hours) 83 83 Activities: Performing warranty work $784,350 Scrapping units 600,660 Inspecting 285,570 Quality training 82,170 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 $ $1 Which of the two seems to have the lowest quality
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