Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 $29,800, whereas no. 172 typically sells for approximately $27,300. The company is very concerned about quality and has provided the following information: No. 165 No. 172 Number of machines produced and sold 140 190 Warranty costs: Average repair cost per unit $ 890 $ 330 Percentage of units needing repair 70 % 10 % Reliability engineering at $130 per hour 1,590 hours 1,990 hours Rework at AT's manufacturing plant: Average rework cost per unit $ 1,880 $ 1,590 Percentage of units needing rework 40 % 25 % Manufacturing inspection at $60 per hour 290 hours 490 hours Transportation costs to customer sites to fix problems $ 29,300 $ 14,600 Quality training for employees $ 34,600 $ 49,600

Required: 2-a. 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
Dollars Percentage of Sales
Prevention cost:
Total $0 %
Appraisal cost: %
Internal failure cost: %
External failure cost:
Total $0 %
Total quality costs $0 0.00 %

2-b. 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
Dollars Percentage of Total Quality Costs
Prevention %
Appraisal %
Internal failure %
External failure %
Total $0

3-a. 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
Dollars Percentage of Sales
Prevention cost:
Total $0 %
Appraisal cost: %
Internal failure cost: %
External failure cost:
Total $0 %
Total quality costs $0 0.00 %

3-b. 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
Dollars Percentage of Total Quality Costs
Prevention %
Appraisal %
Internal failure %
External failure %
Total $0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Horngrens Cost Accounting A Managerial Emphasis

Authors: Srikant Datar, Madhav Rajan

17th Global Edition

129236307X, 9781292363073

More Books

Students also viewed these Accounting questions

Question

Cite ways to reduce excess spending.

Answered: 1 week ago