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Explain the current situation of the company A small company produce medical control devices. The manufacturing plant in Lille produces device called, which are sold
Explain the current situation of the company
A small company produce medical control devices. The manufacturing plant in Lille produces device called, which are sold to medical analysis laboratories. The price is 360 euros per unit Part 1: The T products are manufactured using raw materials and components from the beginning of the process. If there is waste, raw materials and components cannot be saved. Before supplying the product to the sales department, the plant makes some statistical control for quality checking. In average, 5 % of the gross production is wasted through it. On this same grous production, 3 % pass through this control and are delivered to the customer and then replaced by the after-sales service The company provides you with the following accounting information for the - Standard manufacturing cost for a production of 2000 units by months Raw materials and components: 100 euros Direct Labour 80 euros Manufacturing Overheads: 100 euros Distribution Costs 38 euros Standard costs: 318 curos year 2019 The cost of the statistical control is 4000 euros by/month After-sales costs are the following: The cost of a replacement on claim, not considering the replacement of the product itself, is estimated to 140 euros, but the marketing also suggests adding 80 euros for deterioration of the image of the product quality During April, a production process dysfunction provoked delay in the deliveries and then the cancellation of an order of 120 units. Further, an exceptional discount of 8 euros is given to 30% of the deliveries (ou net production) that where delayed. 1. Please, provide an estimate of the cost linked to quality problemes in 2019. This is the production capacity A small company produce medical control devices. The manufacturing plant in Lille produces device called, which are sold to medical analysis laboratories. The price is 360 euros per unit Part 1: The T products are manufactured using raw materials and components from the beginning of the process. If there is waste, raw materials and components cannot be saved. Before supplying the product to the sales department, the plant makes some statistical control for quality checking. In average, 5 % of the gross production is wasted through it. On this same grous production, 3 % pass through this control and are delivered to the customer and then replaced by the after-sales service The company provides you with the following accounting information for the - Standard manufacturing cost for a production of 2000 units by months Raw materials and components: 100 euros Direct Labour 80 euros Manufacturing Overheads: 100 euros Distribution Costs 38 euros Standard costs: 318 curos year 2019 The cost of the statistical control is 4000 euros by/month After-sales costs are the following: The cost of a replacement on claim, not considering the replacement of the product itself, is estimated to 140 euros, but the marketing also suggests adding 80 euros for deterioration of the image of the product quality During April, a production process dysfunction provoked delay in the deliveries and then the cancellation of an order of 120 units. Further, an exceptional discount of 8 euros is given to 30% of the deliveries (ou net production) that where delayed. 1. Please, provide an estimate of the cost linked to quality problemes in 2019. This is the production capacity Step by Step Solution
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