Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Advanced Technologies [AT] produces two compression machines that are popularwith manufacturers of plastics: no. 165 and no. 172. Machine no. 165 has an average selling

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed
Advanced Technologies [AT] produces two compression machines that are popularwith manufacturers of plastics: no. 165 and no. 172. Machine no. 165 has an average selling price of $30,800, whereas no. 172 typically sells for approximately $28,300. The company is very concerned about quality and has provided the following information: No. 155 No. 1?2 Number of machines produced and sold 268 288 warrant}.r costs: Average repair cost per unit $ 94-9 $ 398 Percentage of units needing repair Ital; 1835 Reliability engineering at $236 per hour 1,588 hours 2,688 hours Rework at AT's manufacturing plant: Average rework cost per unit $ 1,988 $ 1,688 Percentage of units needing rework 35% 26% Manufacturing inspection at $55 per hour 348' hours 588 hours Transportation costs to customer sites to fix problems $31,180 $16,688 QualityI training for employees $35,888! $59,888! Required: 1. Classify the preceding costs as prevention, appraisal, internal failure. or external failure. Z-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. 2-1:. Using the classifications in requirement 1, compute AT's prevention, appraisal, internal failure, and external failure costs as a percentage of total quality costs. 3-a. Using the classications in requirement 1, compute AT's quality costs for machine no. 1?2 in dollars and as a percentage of sales revenues. 3-b. Using the classifications in requirement 1, compute AT's prevention, appraisal, internal failure, and external 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. Reg 1 Reg ZA Reg 23 Reg 3A Reg 33 Reg 4 Classify the preceding costs as prevention, appraisal, internal failure, or external failure. We rranty costs Reliability engineering Rework atATs manufacturing plant Manufacturing inspection Transportation costs to customer sites Quality training for employees

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

Principles of Economics

Authors: Robert Frank, Ben Bernanke

5th edition

73511404, 978-0073511405

Students also viewed these Accounting questions

Question

=+a) Is this an observational or experimental study?

Answered: 1 week ago