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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%. I an input field is not used in the table, leave the input field empty; do not select a label or enter a zero.) Grady Cost of Quality Report Prevention Costs: Total prevention costs Appraisal Costs: Total appraisal costs Costs Incurred Total Costs of Quality Percentage of Total Costs of Quality (Rounded) % % Internal Failure Costs: Total internal failure costs External Failure Costs: Total external failure costs Total costs of quality % % % Requirements 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? Data table Number of units manufactured and sold Selling price per unit Variable manufacturing and selling costs per unit Hours spent by engineers improving design Testing and inspection hours per unit Percentage of units reworked in the plant after inspection Average variable rework costs per freezer Percentage of units. repaired.under warranty. at customers! homes. . 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 4,800 units 1,250 550 1,300 1.0 hours 4% 300 9% 570 150 units $65 per hour $20 per hour
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