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i tried doing the table by myself, and the ones with the x's next to them are incorrect. i was using my textbook to help?
i tried doing the table by myself, and the ones with the x's next to them are incorrect. i was using my textbook to help?
Kathy Shorts, president of Oliver Company, was concerned with the trend in sales and profitability. The company had been losing customers at an alarming rate. Furthermore, the company was barely breaking even. Investigation revealed that poor quality was at the root of the problem. At the end of 20x5, Kathy decided to begin a quality improvement program. As a first step, she identified the following costs in the accounting records as quality related: 20x5 Sales (557,000 units @ $100) $55,700,000 Retesting 1,782,400 Rework 2,283,700 Vendor certification 835,500 Consumer complaints 1,114,000 Warranty 2,228,000 Test labor 1,615,300 Inspection labor 1,169,700 Design reviews 222,800 Required: 1. Prepare a quality cost report by quality cost category. Round percentages to one decimal place if rounding is required. For example, 5.78% would be entered as "5.8". Oliver Company Quality Cost Report For the Year Ended December 31, 20x5 Quality Costs Total Quality Cost Percentage of Sales Prevention costs: Inspection labor x $ 1,169,700 Warranty X 2,228,000 3,397,700 6.1 X % Appraisal costs: Test labor 1,615,300 Reinspection X 835,500 2,450,800 4.4 X % Internal failure costs: Retesting 1,782,400 Rework 2,283,700 4,066,100 7.3 % External failure costs: Consumer complaints 1,114,000 Design reviews X 222,800 3,342,000 6 % Total quality costs 13,256,600 X 23.8 X %Step by Step Solution
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