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Grady Industries manufactures freezers. Here is some information about its LX17 line of freezers over the past year: (Click the icon to view the information.)
Grady Industries manufactures freezers. Here is some information about its "LX17" line of freezers over the past year: (Click the icon to view the information.) Read the requirements. 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, X.X%. If a box is not used in the table leave the box empty; do not select a label or enter a zero.) Grady Cost of Quality Report Costs Total Costs of Percentage of Total Costs Number of units manufactured and sold........... ...... 5,000 units Selling price per unit 1,400 Variable manufacturing and selling costs per unit S 800 Hours spent by engineers improving design proving design ........... 800 Testing and inspection hours per unit............ 0.5 hours Percentage of units reworked in the plant after inspection 7% Average variable rework costs per refrigerator ........... 520 Percentage of units repaired under warranty at customers' homes ......... Average variable repair costs at customers' homes per refrigerator .......... 570 Estimated lost sales due to quality.reputation ....... 600 units Design engineer's labor rate (includes benefits and payroll taxes) .......... $110 per hour Inspection costs per hour $60 per hour 6% Grady Cost of Quality Report Costs Incurred Total Costs of Quality Percentage of Total Costs of Quality (Rounded) Prevention Costs: Total prevention costs Appraisal Costs: Total appraisal costs
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