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eBook 34 Show Me How Calculator Cost of Quality and Value Added/Non-Value Added Reports for a Service Company Three Rivers Inc. provides cable TV and

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eBook 34 Show Me How Calculator Cost of Quality and Value Added/Non-Value Added Reports for a Service Company Three Rivers Inc. provides cable TV and Internet service to the local community. The activities and activity costs of Three Rivers are identified as follows: a. Identify the cost of quality classification for each activity and whether the activity is value-added or non-value-added. Value-Added/ Non-Value-Added Classification Quality Cost Classification Quality Control Activities Activity Cost $19,300 82,800 Billing error correction Cable signal testing Reinstalling service (installed incorrectly the first time) 41,500 27,600 12,600 Repairing satellite equipment Repairing underground cable connections to the customer Replacing old technology cable with higher quality cable Replacing old technology signal switches with higher quality switches Responding to customer home repair requests 106,300 121,400 Training employees 23,200 25,300 $460,000 Total activity cost b. Prepare a cost of quality report. Assume that sales are $1,840,000. If required, round percentages to one decimal place. Three Rivers Inc. Cost of Quality Report Quality Cost Percent of Total Quality Cost Quality Cost Classification Percent of Total Sales Check My Work 1 more Check My Work uses remaining Previous N eBook Show Me How Calculator Training employees 25,300 Total activity cost $460,000 b. Prepare a cost of quality report. Assume that sales are $1,840,000. If required, round percentages to one decimal place. Three Rivers Inc Cost of Quality Report Quality Cost Percent of Total Quality Cost Quality Cost Classification Percent of Total Sales Prevention April Internal failure External failure c. Prepare a value-addedon-value-added analysis. Three Rivers Inc. Value Added/Non Value Added Activity Analysis Category Amount Percent Value-added Non-value-added d. What percentage of total costs of quality are considered to be value-added? Check My Work 1 more Check My Work uses remaining Previou

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