Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribedimage text in transcribed

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).) Answer is complete but not entirely correct. Mercury, Inc. Quality Cost Report (in thousands) Last Year This Year Percentage of Total Production Cost Percentage of Total Quality Cost Percentage of Total Quality Cost Percentage of Total Production Amount Amount Cost Prevention costs: 6.7 % 0.1X 0.6X 24.9 % 2.3(X 15.8X 3.3 % 26.8 % 0.6X Machine maintenance 280 150 0.3X Training suppliers 14 6 2.3 2.1X Quality circles 24 95 Total prevention costs Appraisal costs: 310 29.7 7.4 259 43.0 5.7 1.1X 3.8X 4.3(X 4.0X 13.6X 0.5X Incoming inspection 45 24 1.8X 15.3 Final testing 160 82 Total appraisal costs 106 17.6 205 19.6 4.9 2.3 Internal failure costs: 11.5X 2.9X 1.8X 1.4x 1.2 10.6X Rework 120 64 X 9.1X Scrap 76 7,3 55 Total internal failure costs 196 18.8 4.7 119 19.7 2.6 External failure costs: 6.6X 1.7X 6.4 X 0.6 X 2.1X 4.2X Warranty repairs 69 25 25.4X 15.6(X Customer returns 266 94 Total external failure costs 335 32.0 19.8 8.1 119 2.6 Total quality cost $ 1,046 $ 100.1 25.1 603 100.1 13.2 $ $ Total production cost 4,180 4,580 Mercury, Inc. Quality Cost Report (in thousands) This Last Year Year Prevention costs: Machine maintenance $ $ 280 150 Training suppliers Quality circles Total prevention cost Appraisal costs: Incoming inspection Final testing 6 14 24 95 310 259 45 24 160 82 205 106 Total appraisal cost Internal failure costs: Rework 120 64 76 55 Scrap 196 119 Total internal failure cost External failure costs: Warranty repairs 69 25 266 94 Customer returns 335 119 Total external failure cost $ 1,046 $ 603 Total quality cost $ 4,580 $ 4,180 Total production cost

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

Students also viewed these Accounting questions