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lew previous atemp Advanced Technologies (AT) produces two compression machines that are popular with manufacturers of plastics: no. 165 and no. 172. Machine no. 165
lew previous atemp Advanced Technologies (AT) produces two compression machines that are popular with manufacturers of plastics: no. 165 and no. 172. Machine no. 165 has an average selling price of $29,000, whereas no. 172 typically sells for approximately $27,000. The company is very concerned about quality and has provided the following information: No. 165 140 No. 172 170 $ 850 75% 1,550 hours $ 320 10% 1,950 hours Number of machines produced and sold Warranty costs: Average repair cost per unit Percentage of units needing repair Reliability engineering at $100 per hour Rework at AT's manufacturing plant: Average rework cost per unit Percentage of units needing rework Manufacturing inspection at $40 per hour Transportation costs to customer sites to fix problems Quality training for employees $ 1,850 30% 270 hours $28,500 $34,000 $ 1,550 30% 450 hours $14,000 $49,500 Required: 1. Classify the preceding costs as prevention, appraisal, internal failure, or external failure. 2-a. Using the classifications in requirement (1), compute AT's quality costs for machine no. 165 in dollars and as a percentage of sales revenues. 2-b. Using the classifications in requirement (1), compute AT's calculate prevention, appraisal, internal failure, and external failure costs as a percentage of total quality costs. 3-a. Using the classifications in requirement (1), compute AT's quality costs for machine no. 172 in dollars and as a percentage of sales revenues. 3-b. Using the classifications in requirement (1), compute AT's calculate prevention, appraisal, internal failure, and external failure costs as a percentage of total quality costs. 4. Is the company "investing" its quality expenditures differently for the two machines. Req 1 Req 2A Req 2B Req Req 3B Req 4 Using the classifications in requirement (1), compute AT's quality costs for machine no. 165 in dollars and as a percentage of sales revenues. (Round "Percentage of Sales" to 2 decimal places.) No. 165 Percentage of Sales Dollars 0 Sales revenue Prevention cost: Reliability engineering Quality training Total Appraisal cost Internal failure cost: External failure cost: Warranty costs Transportation costs to customer sites Total Total quality costs % % % $ 0 | % % 0 0.00 Complete this question by entering your answers in the tabs below. Req1 Req 2A Req 2B Req 3A Req 3B Reg 4 Using the classifications in requirement (1), compute AT's calculate prevention, appraisal, internal failure, and external failure costs as a percentage of total quality costs. (Round "Percentage of Total Quality Costs" to 2 decimal places. Total may not be equal to 100% due to rounding.) Dollars No. 165 Percentage of Total Quality Costs % % Prevention Appraisal Internal failure External failure % % Total $ 0 Req 1 Req 2A Req 2B Req Reg 3B Req 4 Using the classifications in requirement (1), compute AT's quality costs for machine no. 172 in dollars and as a percentage of sales revenues. (Round "Percentage of Sales" to 2 decimal places.) No. 172 Percentage of Sales Dollars 0 % Sales revenue Prevention cost: Reliability engineering Quality training Total Appraisal cost Internal failure cost: External failure cost: Warranty costs Transportation costs to customer sites Total Total quality costs % % $ 0 % % $ 0 0.00 Reg 1 Reg 2A Req 2B Req Reg 3B Reg 4 Using the classifications in requirement (1), compute AT's calculate prevention, appraisal, internal failure, and external failure costs as a percentage of total quality costs. (Round "Percentage of Total Quality Costs" to 2 decimal places. Total may not be equal to 100% due to rounding.) Dollars Prevention Appraisal Internal failure External failure Total No. 172 Percentage of Total Quality Costs % % % % $ 0
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