Question
Meagher Solutions Inc. manufactures memory chips for personal computers. An activity analysis was conducted, and the following activity costs were identified with the manufacture and
Meagher Solutions Inc. manufactures memory chips for personal computers. An activity analysis was conducted, and the following activity costs were identified with the manufacture and sale of memory chips:
Activities | Activity Cost | ||
Correct shipment errors | $150,000 | ||
Disposing of scrap | 104,000 | ||
Emergency equipment maintenance | 112,000 | ||
Employee training | 70,000 | ||
Final inspection | 74,000 | ||
Inspecting incoming materials | 60,000 | ||
Preventive equipment maintenance | 49,000 | ||
Processing customer returns | 84,000 | ||
Scrap reporting | 54,000 | ||
Supplier development | 25,000 | ||
Warranty claims | 218,000 | ||
Total activity cost | $1,000,000 |
This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below.
Open spreadsheet
Choose the correct Pareto chart of these activities below.
The correct chart is
chart Achart Bchart Cchart D
.
A. |
$300,000 $250,000 $200,000 $150,000 $100,000 $50,000 100.00% 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Pareto Chart of Quality Activities Supplier development Preventive equipment maintenance Scrap reporting Inspecting incoming materials Employee training Final inspection Processing customer returns Disposing of scrap Emergency equipment maintenance Correct shipment errors Warranty claims |
B. |
$300,000 $250,000 $200,000 $150,000 $100,000 $50,000 100.00% 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Pareto Chart of Quality Activities Supplier development Preventive equipment maintenance Scrap reporting Inspecting incoming materials Emergency equipment maintenance Correct shipment errors Warranty claims Employee training Final inspection Processing customer returns Disposing of scrap |
C. |
$300,000 $250,000 $200,000 $150,000 $100,000 $50,000 100.00% 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Pareto Chart of Quality Activities Supplier development Preventive equipment maintenance Employee training Final inspection Processing customer returns Scrap reporting Inspecting incoming materials Disposing of scrap Emergency equipment maintenance Correct shipment errors Warranty claims |
D. |
$300,000 $250,000 $200,000 $150,000 $100,000 $50,000 100.00% 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Pareto Chart of Quality Activities Supplier development Preventive equipment maintenance Scrap reporting Inspecting incoming materials Employee training Final inspection Processing customer returns Disposing of scrap Emergency equipment maintenance Correct shipment errors Warranty claims |
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