Question
Glory Industries manufactures freezers. Here is some information about its LX17 line of freezers over the past year. Save Requirement 1. Prepare a Cost
Glory Industries manufactures freezers. Here is some information about its "LX17" line of freezers over the past year. Save Requirement 1. Prepare a Cost of Quality (COQ) report. In addition to calculating the total costs of each category, calculate the percentage of COQ category of the total COQ. (Round the percentage to the one tenth of a percent, XX%. If an input field is not used in the table, leave the input field empty, do not select a label or enter a zero.) Glory Cost of Quality Report Costs Incurred Percentage of Total Costs Total Costs of Quality of Quality (Rounded) Prevention Costs: Total prevention costs Glory Industries manufactures freezers. Here is some information about its "LX17" line of freezers over the past year. Appraisal Costs: Total appraisal costs Internal Failure Costs: Total internal failure costs External Failure Costs: Total external failure costs Total costs of quality % 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.. 1.0 hours Percentage of units reworked in the plant after inspection... 6% Average variable rework costs per freezer... $ 300 Percentage of units repaired under warranty at customers' homes... 5% Average variable repair costs at customers' homes per freezer. . $I 430 Average variable repair costs at customers' homes per freezer.... Estimated lost sales due to quality.reputation. Design engineer's labor rate (includes benefits and payroll taxes) Inspection costs per hour. $ 430 550 units $85 per hour $60 per hour 1. Prepare a Cost of Quality (COQ) report. In addition to calculating the total costs of each category, calculate the percentage of COQ category of the total COQ. 2. Why would the variable repair cost at the customers' home generally be higher than the "in factory" rework cost? 3. How can use of the COQ report lead to improvements in the production process or in the quality of the product itself?
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