E6A

improve product $50,400 Training of employees 13,600 28,000 Customer Reinspection of rework 30,300 Quality audits 49,500 Design review 7,100 Warranty claims 26400 Sample testing of materials 98,700 Returned goods 45,700 Preventive maintenance 41,800 Quality engineering 41,100 Setup for testing new products Scrap and rework Losses caused by vendor scrap Product simulation 1. Prepare a detailed of the costs of quality efforts 2. ACCOUNTING analysis Comment on the company's current improve product quality. Measuring Costs of Quality product lines. E6A. Lola Corporation has two departments that uce two separate past year. Rev. The company has been implementing total quality management over the enue and costs of quality for that year follow. Totals Dept. Q Dept. R $20,200,000 $10,000,000 $10,200,000 Annual sales Costs of quality: 310,500 204,500 106,000 Prevention costs 104,001 Appraisal costs 97,500 291,500 194,000 Internal failure costs 204,000 144,000 External failure costs 1,010,000 461,999 548,001 Totals Which department is taking a more serious approach to implementing TQM? Base answer on the following computations. (Round to two decimal places.) l. Total costs of quality as a percentage of sales 2. Ratio of costs of conformance to total costs of quality 3. Ratio of costs of nonconformance to total costs of quality 4. Costs of nonconformance as a percentage of sales Measures of Product Design Quality E7A. AccouNTING CONNECTION Vu It, Inc.'s management's goal was to be to market with its newest product, TV sunglasses. Comment on how the company s ures of product design quality, which follow, compare with the industry benchmarks. Industry Measures of Product Design oualitu