I have finished most of the questions just would like to check if it right and if not can you explain more and help in other part

Harwood Company's quality cost report is to be based on the following data:

2021 2022

Depreciation of test equipment $94,000 $95,000

Audits of the effectiveness of the quality system $54,000 $51,000

Product recall $20,000 $30,000

Test and inspection of incoming materials $82,000 $85,000

Re-entering data because of keying errors $11,000 $16,000

Rework labour and overhead $48,000 $54,000

Technical support provided to suppliers $12,000 $10,000

Net cost of scrap $29,000 $33,000

Lost sales due to poor quality $74,000 $84,000

Sales grew from $950,000 in 2021 to $1,000,000 in 2022

Required: Prepare a quality cost report in proper order and in good form with separate sections for each of the four types of quality costs with appropriate subtotals and an overall total for both years as well as a percentage of sales column. Carry percentage computations to one decimal place.

Answer to Question #1

Quality Cost Report

	2022	%	2021	%
Sales in Unit	1,000,000		950,000
Prevention Costs:	95,000	9.5	94,000	9.9
Equipment	51,000	5.1	54,000	5.7
Effectiveness	10,000	1	12,000	1.3
Total	156,000	15.6	160,000	16.8
Appraisal Costs:
Material	85,000	8.5	82,000	8.6
total	85,000	8.5	82,000	8.6
Internal Failure costs:
Data	16,000	1.6	11,000	1.2
Labour	54,000	5.4	48,000	5
Net cost	33,000	3.3	29,000	3.1
total	103,000	10.3	88,000	9.3
External failure Costs:
product	30,000	3	20,000	2.1
Lost Sales	84,000	8.4	74,000	7.8
Total	114,000	11.4	94,000	9.9
Final Total	1,458,000	45.8	1,374,000	44.6

Question # 2:

The IT Corporation produces and markets two types of electronic calculators: Model 11 and Model 12. The following data were gathered on activities last month:

	Model 11	Model 12
Sales in units	5,000	3,000
Selling price per unit	$50	$100
Variable production costs per unit	$10	$26
Traceable fixed production costs	$100,000	$150,000
Variable selling expenses per unit	$5	$6
Traceable fixed selling expenses	$5,000	$7,500
Allocated division administrative expenses	$50,000	$60,000

Required:

1. Prepare a segmented income statement in the contribution format for last month. Traceable fixed costs may be combined on a single line on the statement. (10 marks)

Answer to question # 2:

Segmented Income Statement in Contribution format

Model -11	Model -12
Sales in Unit	250,000	Sales	300,000
Selling price per unit	-50,000	Product Costs	-78,000
Variable production costs per unit	-25,000	Variable cost	-18,000
Variable selling expenses per unit	175,000	Variable expenses	204,000
Contribution margin	-100,000	Contribution margin	-150,000
production margin	-5,000	Production margin	-7,500
Traceable fixed selling expenses	70,000	Fixed selling expenses	46,500
Allocated division administrative expenses	-50,000	Allocated Administrative expense	-60,000
Net income	20,000	Net income	-13,500

Question # 3: (Marks: 5)

1. Identify three types of responsibility centres and describe how performance is measured for each one.
2. What is meant by the terms margin and turnover?