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Grady Industries manufactures freezers. Here is some information about its LX1T line of freezers over the past year: g (Click the icon to View the
Grady Industries manufactures freezers. Here is some information about its "LX1T" line of freezers over the past year: g (Click the icon to View the information.) Read the muirements. Requirement 1. Prepare a Cost of Quality (000) report. In addition to calculating the total costs of each category, calculate the percentage of 0062 category of the total (300. (Round the percentage to the one tenth of a percent, X.X%. If 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 Costs Total Costs of Percentage of Total Costs Incurred Quality of Quality (Rounded) Prevention Costs: Total prevention costs % Requirements 1. Prepare a Cost of Quality (000) 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? -m Data table Number of units manufactured and sold .............................. 4,000 units Selling price per unit. .............................................. 8 1,500 Variable manufacturing and selling costs per unit ...................... S 700 Hours spent by engineers improving design ........................... 1,500 Testing and inspection hours per unit ................................ 0.5 hours Percentage of units reworked in the plant after inspection ............... 7% Average variable rework costs per freezer ............................. S 350 Percentage of units repaired under warranty at customers' homes ........ 10% Average variable repair costs at customers' homes per freezer ........... S 500 Estimated lost sales due to qualityreputation ......................... 500 units Design engineer's labor rate (includes benefits and payroll taxes) ........ $65 per hour Inspection costs per hour: .......................................... $20 per hour Appraisal Costs: Total appraisal costs % Internal Failure Costs: :: Total internal failure costs % External Failure Costs: ll ll Total external failure costs Total costs of quality % %
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