Chapter 4 Question 5

Homework: Chapter 4 Homework Question 5, E4-29A (simil... Part 1 of 3 HW Score: 80%, 4 of 5 points O Points: 0 of 1 o Save Goodwin Industries manufactures freezers. Here is some information about its "LX17" line of freezers over the past year: : (Click the icon to view the information.) Read the requirements. COS Requirement 1. Prepare a Cost of Quality (CO) report. In addition to calculating the total costs of each category, calculate the percentage of COQ category of the total COQ. (Round the percentage to the one tenth of a percent, X.X%. If an input field is not used in the table, leave the input field empty; do not select a label or enter a zero.) Goodwin Cost of Quality Report Costs Total Costs of Percentage of Total Costs Incurred Quality ofan Prevention Costs: - X X Data Table Design engineering Gross profit Total prevention costs Number of units manufactured and sold.. 7,200 units Selling price per.unit... . $ 1,250 Appraisal Costs: Variable manufacturing and selling costs.per unit. $ 450 Hours spent by engineers improving design 1,200 Testing and inspection hours per unit...... 1.0 hours Total appraisal costs Percentage of units reworked in the plant after inspection 5% Average variable rework costs.per freezer......... $ 540 Percentage of units repaired under warranty at customers' Internal Failure Costs: homes 6% Average variable repair costs at customers' homes per freezer. .. $ 560 Estimated lost sales due to quality reputation........ . 250 units Design engineer's labor rate (includes benefits and payroll Total internal failure costs taxes) $85 per hour Inspection costs per hour...... $20 per hour External Failure Costs: Total external failure costs Print Done Total costs of quality Screenshot 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