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Data table Number of units manufactured and sold 3,200 units Selling price per unit... . $ 1,250 Variable manufacturing and selling costs per unit. .$

Data table Number of units manufactured and sold 3,200 units Selling price per unit... . $ 1,250 Variable manufacturing and selling costs per unit. .$ 750 Hours spent by engineers improving design.. 1,500 Testing and inspection hours per unit. 0.5 hours Percentage of units reworked in the plant after inspection.. 7% Average variable rework costs per freezer Percentage of units repaired under warranty at customers' homes... .$ 400 6% Average variable repair costs at customers' homes per freezer Estimated lost sales due to quality.reputation.. .$ 430 650 units Design engineer's labor rate (includes benefits and payroll taxes) Inspection costs per hour ...... $65 per hour $80 per hour Print Done - X 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? Acct 116B Spring Homework: Homework Chapter Four Gambrell 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 Requirement 1. Prepare a Cost of Quality (COQ) report. In addition to calculating the total costs of each category, calculate not select a label or enter a zero.) Gambrell Cost of Quality Report Costs Incurred Total Costs of Quality Percentage of Total Costs of Quality (Rounded) Prevention Costs: Design engineering Total prevention costs Appraisal Costs: Testing and inspection Total appraisal costs Internal Failure Costs: Rework (internal) Total internal failure costs External Failure Costs: Plant maintenance Lost profits due to poor reputation Total external failure costs Total costs of quality % % % % %

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