management accounting

2 1 10% 5% Nil Testing & Inspection (hours per unit) Percentage of units Reworked in Plant Rework costs (per unit) 125 350 Percentage of units - Repaired 5% 10% at customer's site Repair costs (per unit) 275 500 No. of units delivered to 17 500 8 000 customer before scheduled Delivery date No. of customer complaints 1000 750 Other than for defective units Average time from when a 20 days 15 days customer places an order to day of delivery Estimated lost sales due to 500 poor quality (no, of units) In addition the labour rates per hour for the various actis are as follows: Design 150 per hour Testing & Inspection 50 per hour The CEO of CL has contacted a benchmarking agency t if they have any information relating to key competitors agency responds that the only information it has relates sector averages' on fridges within the price range 350 600 and is as follows: Selling Price (within the range) 350 - 600 Variable Production Costs (within the range) 125 - 350 Hours spent on design Unknown Percentage of units reworked 5%-10% Percentage of units repaired at customer's site 2% Units delivered before scheduled delivery date 60%-70% Customer Complaints 10% of sale made Avge.time from when a customer places an 25 days order to receipt of the unit. Required: a) Prepare a report evaluating the whether CL is success meeting its strategic objectives The report should includ section devoted to the Cost of Quality' together with ot measures/ numerics you feel it would be appropriate to incorporate in support of your answer (15 marks) 2 1 10% 5% Nil Testing & Inspection (hours per unit) Percentage of units Reworked in Plant Rework costs (per unit) 125 350 Percentage of units - Repaired 5% 10% at customer's site Repair costs (per unit) 275 500 No. of units delivered to 17 500 8 000 customer before scheduled Delivery date No. of customer complaints 1000 750 Other than for defective units Average time from when a 20 days 15 days customer places an order to day of delivery Estimated lost sales due to 500 poor quality (no, of units) In addition the labour rates per hour for the various actis are as follows: Design 150 per hour Testing & Inspection 50 per hour The CEO of CL has contacted a benchmarking agency t if they have any information relating to key competitors agency responds that the only information it has relates sector averages' on fridges within the price range 350 600 and is as follows: Selling Price (within the range) 350 - 600 Variable Production Costs (within the range) 125 - 350 Hours spent on design Unknown Percentage of units reworked 5%-10% Percentage of units repaired at customer's site 2% Units delivered before scheduled delivery date 60%-70% Customer Complaints 10% of sale made Avge.time from when a customer places an 25 days order to receipt of the unit. Required: a) Prepare a report evaluating the whether CL is success meeting its strategic objectives The report should includ section devoted to the Cost of Quality' together with ot measures/ numerics you feel it would be appropriate to incorporate in support of your answer (15 marks)