Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Mercury's quality improvement program has now been in operation for one year. The company's most recent quality cost report is shown below. Prevention costs:

image

Mercury's quality improvement program has now been in operation for one year. The company's most recent quality cost report is shown below. Prevention costs: Machine maintenance Training suppliers Quality circles Total prevention cost Appraisal costs: Mercury, Incorporated Quality Cost Report (in thousands) Incoming inspection Final testing Total appraisal cost Last Year This Year $ 270 $ 140 5 12 25 90 300 242 40 20 185 90 225 110 Internal failure costs: Rework 110 62 Scrap 74 50 es Total internal failure cost 184 112 External failure costs: Warranty repairs Total external failure cost 68 36 264 92 332 128 $ 592 Customer returns Total quality cost Total production cost $ 1,041 $ 4,170 $ 4,570 As they were reviewing the report, Elsoe asked Tran what he now thought of the quality improvement program. Tran replied. "I'm relieved that the new quality improvement program hasn't hurt our bonuses, but the program has increased the workload in the Production Department. It is true that customer returns are way down, but the cell phones that were returned by customers to retail outlets were rarely sent back to us for rework." Required: 1. Expand the company's quality cost report by showing the costs in both years as percentages of both total production cost and total quality cost. (Round your percentage answers to 1 decimal place (i.e 0.1234 should be entered as 12.3).) Mercury, Incorporated

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Sure based on the image you sent the question is What is the cost of equity capital Ke using the CAP... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer

12th Edition

978-0073526706, 9780073526706

More Books

Students also viewed these Accounting questions

Question

=+6. For the decision tree of Exercise 4,

Answered: 1 week ago

Question

The transpose tool will

Answered: 1 week ago

Question

What is meant by the term denominator level of activity?

Answered: 1 week ago

Question

What problems face Russian automotive manufacturers?

Answered: 1 week ago