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Gamma Industries manufactures freezers. Here is some information about its LX17 line of freezers over the past year: Number of units manufactured and sold 2,500

Gamma Industries manufactures freezers. Here is some information about its "LX17" line of freezers over the past year:

Number of units manufactured and sold 2,500 units
Selling price per unit $2,000
Variable manufacturing and selling costs per unit $1,100
Hours spent by engineers improving design 1,200
Testing and inspection hours per unit 0.5 hours
Percentage of units reworked in the plant after inspection 4%
Average variable rework costs per refrigerator $500
Percentage of units repaired under warranty at customers homes 5%
Average variable repair costs at customers homes per refrigerator $540
Estimated lost sales due to quality reputation 550 units
Design engineers labor rate (includes benefits and payroll taxes) $100 per hour
Inspection costs per hour $70 per hour

Requirement 1. Prepare a Cost of Quality (COQ) report. In addition to calculating the total costs of eachcategory, calculate the percentage of COQ category of the total COQ. (Round the percentage to the one tenth of a percent, X.X%. If a box is not used in the table leave the box empty; do not select a label or enter a zero.)

Gamma Cost of Quality Report Costs Total Costs of Percentage of Total Costs
Incurred Quality of Quality (Rounded)
Prevention Costs:
Total prevention costs %
Appraisal Costs:
Total appraisal costs %
Internal Failure Costs:
Total internal failure costs %
External Failure Costs:
Total external failure costs %
Total costs of quality %

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