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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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