ADDED Numerical data*** Sorry!!!

Number of units manufactured and sold. . . . . . . . . . . . . . . . . . . . . . . . . . . .		4,000 units
Selling price per unit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .		$1,500
Variable manufacturing and selling costs per unit. . . . . . . . . . . . . . . . . . . . .		$700
Hours spent by engineers improving design. . . . . . . . . . . . . . . . . . . . . . . . .		1,100
Testing and inspection hours per unit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .		0.5 hours
Percentage of units reworked in the plant after inspection. . . . . . . . . . . . . . .		6%
Average variable rework costs per refrigerator. . . . . . . . . . . . . . . . . . . . . . .		$430
Percentage of units repaired under warranty at customers homes. . . . . . . . .		10%
Average variable repair costs at customers homes per refrigerator. . . . . . .		$540
Estimated lost sales due to quality reputation . . . . . . . . . . . . . . . . . . . . . . . . . .		500 units
Design engineers labor rate (includes benefits and payroll taxes). . . . . . . .		$65 per hour
Inspection costs per hour. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .		$50 per hour

This is a 3 part question, please answer all 3 requirements. Requirement 1 setup is displayed starting below, thank you in advance. I will happily rate your answers to show how helpful you are.

Requirements 1. Prepare a Cost of Quality (COQ) report. In addition to calculating the total costs of each category, calculate the percentage of COQ category of the total COQ. 2. Why would the variable repair cost at the customers' home generally be higher than the "in factory" rework cost? 3. How can use of the COQ report lead to improvements in the production process or in the quality of the product itself? Print Done