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Exercise 10-52 (Algo) Costs of Quality (LO 10-7, 8) Nuke-It-Now manufactures microwave ovens. The following represents the financial Information from one of its manufacturing plants

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Exercise 10-52 (Algo) Costs of Quality (LO 10-7, 8) Nuke-It-Now manufactures microwave ovens. The following represents the financial Information from one of its manufacturing plants for two years Year 1 Year 2 Sales $3.590,000 $3,890.000 Conta Redesign process 5 28,000 $ 35,500 Discard detective units 38,700 44,300 Training on equipment 256,000 215,000 Warranty claims 127,000 177,000 Contract cancellations 203,000 157.000 Rework 70,000 107.000 Preventive maintenance 122,000 154,000 Product liability claims 310,000 179,000 Final inspection 199.000 199,000 Required: a. Classify these items into Prevention, Appraisal, Internal failure, or External failure costs. b. Calculate the ratio of the prevention, appraisal, Internal failure, and external failure costs to sales for year 1 and year 2. Complete this question by entering your answers in the tabs below. Required A Required B Calculate the ratio of the prevention, appraisal, internal failure, and external failure costs to sales for year 1 and year 2 (Enter your answers as a percentage rounded to 1 decimal place (.e. 32.1).) Yoar 1 Year 2 O Preventive maintenance Product liability claims Final inspection 122,000 310,000 199,000 154,000 179,000 199,000 Required: a. Classify these items into Prevention. Appraisal, Internal failure, or External failure costs. b. Calculate the ratio of the prevention, appraisal, internal failure, and external failure costs to sales for year 1 and year 2. Complete this question by entering your answers in the tabs below. Required A Required B Calculate the ratio of the prevention, appraisal, Internal failure, and external fallure costs to sales for year 1 and year 2. (Enter your answers as a percentage rounded to 1 decimal place (l.e., 32.1).) Year 2 Prevention Appraisal Internal failure External failure Yoar 1 % % % % %

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