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E only please. I'm having difficulty figuring the total manufacturing costs Quality Costs (000s) 2015 2011 2012 2013 2014 Internal failure $47.0 $52.8 $38.7 $37.2
E only please. I'm having difficulty figuring the total manufacturing costs
Quality Costs (000s) 2015 2011 2012 2013 2014 Internal failure $47.0 $52.8 $38.7 $37.2 $30.3 External failure Prevention Appraisal 96.4 94.5 70.1 115.9 105.8 39.1 49.0 3.5 28.1 10.1 29.7 29.5 23.4 19.7 31.3 Accounting Measures (000s) 2014 2015 2011 2013 2012 Manufacturing $401.2 $392.1 $373.4 $374.2 $382.1 cost Sales 2801.3 2534.5 2599.0 2737.4 2422.6 Part B: Expedition Outfitters produces approximately 19,000 parkas annually. The quality management program has shown results, improving the average percentage of good parkas produced by 2.5% each year, beginning with 79% good-quality parkas in 2011. Of the poor-quality parkas that are produced, about 20% can be reworked and sold as good d. Compute the following for each of the 5 years: the number parkas that are of saleable quality after the first run, the number parkas that are rejected after the first run, the number of reworked parkas, and the total number of saleable parkas (the product yield) e. Using a rework cost of $15.50 per parka, determine the costs to rework parkas, the total manufacturing cost and the manufacturing cost per saleable parka for each of the five years. What do these results imply about the company's quality management program? (Hint: You know the cost to produce a good, first-run parka. If you are recovering second-run parkas, then how much does it cost to recover them? How many do you recover? How do you incorporate those numbers into the overall cost of producing good parkas?) the right track if, for 2011: Total Failure Costs as a % of Total Quality Costs 83.1 %, Prevention 15.2 %, Quality Sales 52.5 % , and Manufacturing Cost per Saleable Parka -24.40 (results may vary You are on Costs as a % of Total Quality Costs Index 7.7%, Quality Cost Index 1.8%, Appraisal Costs as a % of Total Quality Costs slightly from rounding) Step by Step Solution
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