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Harvey Company designs and produces surgical lasers. Its product is brilliantly designed, but the manufacturing process has been plagued by chronic quality control problems. To
Harvey Company designs and produces surgical lasers. Its product is brilliantly designed, but the manufacturing process has been plagued by chronic quality control problems. To help address the situation, Harvey formed a crossfunctional team of managers that quantified its costs of quality over the last two quarters as follows:
Costs in thousands
Quarter Quarter
Cost of testing equipment $ $
Customer returns of defective goods $ $
Downtime due to quality problems $ $
Inspection $ $
Net cost of scrap $ $
Product recalls $ $
Quality engineering $ $
Rework labor $ $
Statistical process control $ $
Supplies used in testing $ $
Systems development $ $
Warranty repairs $ $
The companys sales were $ million in Quarter and $ million in Quarter
What quality cost classification should appear in cells B B and B
Inspection cell B
Quality engineering cell B
Warranty repairs cell B
What are the first quarters total prevention, appraisal, internal failure, and external failure costs? What are the same four amounts for the second quarter?
Quarter in thousands Quarter in thousands
Prevention
Appraisal
Internal failure
External failure
What are the first quarters total prevention, appraisal, internal failure, and external failure costs each stated as a percent of the first quarters total cost of quality? What are the same four percentages for the second quarter?
Note: Round your answers to decimal place.
Quarter Quarter
Prevention
Appraisal
Internal failure
External failure
What are the first quarters total prevention, appraisal, internal failure, and external failure costs each stated as a percent of the first quarters sales? What are the same four percentages for the second quarter?
Note: Round your answers to decimal place.
Quarter Quarter
Prevention
Appraisal
Internal failure
External failure
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