Question
Advanced Technologies (AT) produces two compression machines that are popular with manufacturers of plastics: no. 165 and no. 172. Machine no. 165 has an average
Advanced Technologies (AT) produces two compression machines that are popular with manufacturers of plastics: no. 165 and no. 172. Machine no. 165 has an average selling price of $30,000, whereas no. 172 typically sells for approximately $27,500. The company is very concerned about quality and has provided the following information:
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Advanced Technologies (AT) produces two compression machines that are popular with manufacturers of plastics: no. 165 and no. 172. Machine no. 165 has an average selling price of $30,000, whereas no. 172 typically sells for approximately $27,500. The company is very concerned about quality and has provided the following information No. 165 No. 172 Number of machines produced and sol Warranty costs: 160 200 Average repair cost per unit Percentage of units needing repair $ 900 $ 350 65% 10% Reliability engineering at $150 per hour Rework at AT's manufacturing plant: 1,600 hours 2,000 hours Average rework cost per unit $ 1,900 $ 1,600 Percentage of units needing rework Manufacturing inspection at $40 per hour Transportation costs to customer sites to fix problem:s Quality training for employees 25% 300 hours 20% 500 hours $29,500 $ 35,000 $15,000 $50,000 Required: 1. Classify the preceding costs as prevention, appraisal, internal failure, or external failure 2-a. Using the classifications in requirement (1), compute AT's quality costs for machine no. 165 in dollars and as a 2-b. Using the classifications in requirement (1), compute AT's calculate prevention, appraisal, internal failure, and external 3-a. Using the classifications in requirement (1), compute AT's quality costs for machine no. 172 in dollars and as a 3-b. Using the classifications in requirement (1), compute AT's calculate prevention, appraisal, internal failure, and external percentage of sales revenues failure costs as a percentage of total quality costs percentage of sales revenues failure costs as a percentage of total quality costs 4. Is the company "investing" its quality expenditures differently for the two machines Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 3A Req 3B Req 4 Classify the preceding costs as prevention, appraisal, internal failure, or external failure. Warranty costs Reliability engineering Rework at ATs manufacturing plant Manufacturing inspection Transportation costs to customer sites External failure Quality taining for employees External failure Prevention Internal failure Appraisal Prevention Req 1 Req 1 Req 2A Req 2B Req 3A Req 3B Req 4 Using the classifications in requirement (1), compute AT's quality costs for machine no. 165 in dollars and as a percentage of sales revenues. (Round "Percentage of Sales" to 2 decimal places.) No. 165 Percentage of Sales Dollars Prevention cost: Total Appraisal cost: Internal failure cost: External failure cost: Total otal quality costs 0 0.00 % Req 1 Req 2B> Req 1 Req 2A Req 2B Req 3A Req 3B Req 4 Using the classifications in requirement (1), compute AT's calculate prevention, appraisal, internal failure, and external failure costs as a percentage of total quality costs. (Round "Percentage of Total Quality Costs" to 2 decimal places. Total may not be equal to 100% due to rounding.) No. 165 Percentage of Total Quality Costs Dollars Prevention Appraisal Internal failure External failure Total 0 Req 2A Req 3A > Req 1 Req 2A Req 2B Req 3A Req 3B Req 4 Using the classifications in requirement (1), compute AT's quality costs for machine no. 172 in dollars and as a percentage of sales revenues. (Round "Percentage of Sales" to 2 decimal places.) No. 172 Percentage of Sales Dollars Prevention cost: Total Appraisal cost Internal failure cost: External failure cost: Total Total quality costs 0 0.00 % Req 2B Req 1 Req 2A Req 2B Req 3A Req 3B Req 4 Using the classifications in requirement (1), compute AT's calculate prevention, appraisal, internal failure, and external failure costs as a percentage of total quality costs. (Round "Percentage of Total Quality Costs" to 2 decimal places. Total may not be equal to 100% due to rounding.) No. 172 Percentage of DollarsTotal Quality Costs Prevention Appraisal Internal failure External failure Total 0 Req 3A Req 4 Req 1 Req 2A Req 2B Req 3A Req 3B Req 4 Is the company "investing" its quality expenditures differently for the two machines Yes ONoStep by Step Solution
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