Required information [The following information applies to the questions displayed below.] Harvey Company designs and produces surgical lasers. Its product is brilliantly designed, but the manufacturing process has been plagued by chronic quality control problems. To help address the situation, Harvey formed a cross- functional team of managers that quantified its costs of quality over the last two quarters as follows: Cost of testing equipment Customer returns of defective goods Downtime due to quality problems Inspection Net cost of scrap Product recalls Quality engineering Rework labor Statistical process control Supplies used in testing Systems development Warranty repairs Costs (in thousands) Quarter 1 Quarter 2 $ 270 $ 390 $3,200 $ 200 $ 600 $1,100 $1,700 $2,770 $ 800 $1,300 $3,500 $ 600 $1,080 $1,650 $1,400 $1,600 $ 0 $ 270 $ 30 $ 40 120 $ 680 $3,300 $2,800 The company's sales were $95 million in Quarter 1 and $100 million in Quarter 2. A B C G H Quarter 2 Q2 % of Total Quality Cos Cost Description Classification Q1% of Sale Q2 Amount Q2 % of Sales 390 200 Cost of testing equipment Customer returns of defective goods Downtime due to quality problems Inspection Net cost of scrap Product recalls Quality engineering Rework labor Statistical process control Supplies used in testing Systems development Warranty repairs Harvey Company Quality Cost Report (in thousands) Quarter 1 Q1 % of Total Q1 Amount Quality Cos $ 270 $ 3,200 $ 600 $ 1,700 $ 800 $ 3,500 $ 1,080 $ 1,400 $ $ 30 $ 120 $ 3,300 $ 16,000 0% $ $ $ $ $ $ $ $ $ $ $ $ 0.0% $ 1,100 2,770 1,300 600 1,650 1,600 270 40 680 2,800 13,400 Total 0% 0.0% Q1 Sales $ Q2 Sales $ 95,000 100,000 Classification 1. Prevention 2. Appraisal 3. Internal Failure 4. External Failure 3. Refer back to the Template A tab: a. Create a PivotTable based on the data in cells A5 through H17. b. Using PivotChart, create a stacked bar chart that includes a total of two bars-one for each quarter. Each bar should quantify that quarter's total quality costs as well as the portion of those costs that fall within each of the four quality cost categories (i.e., prevention, appraisal, internal failure, and external failure). c. Using PivotChart again, create a stacked bar chart that includes a total of two bars-one for each quarter. Each bar should quantify that quarter's total quality costs as a percent of that quarter's sales. It should also depict each of the four quality cost categories (i.e., prevention, appraisal, internal failure, and external failure) as a percent of sales. Complete this question by entering your answers in the tabs below. Req 3B Req 30 Using PivotChart, create a stacked bar chart that includes a total of two bars-one for each quarter. Each bar should quantify that quarter's total quality costs as well as the portion of those costs that fall within each of the four quality cost categories (i.e., prevention, appraisal, internal failure, and external failure). Based on a review of your bar chart, answer the following questions: (Enter your answers in thousands.) Show less b-1 b-2 From quarter 1 to quarter 2, the external failure costs From quarter 1 to quarter 2, the prevention costs From quarter 1 to quarter 2, the internal failure costs by by by b-3 Complete this question by entering your answers in the tabs below. Req 3B Req 3C Using PivotChart again, create stacked bar chart that includes a total of two bars-one for each quarter. Each bar should quantify that quarter's total quality costs as a percent of that quarter's sales. It should also depict each of the four quality cost categories (i.e., prevention, appraisal, internal failure, and external failure) as a percent of sales. Based on a review of your bar chart, answer the following questions: (Round your answers to 2 decimal places.) Show less C-1 % From quarter 1 to quarter 2, the appraisal costs as a percent of sales From quarter 1 to quarter 2, the external failure costs as a percent of sales From quarter 1 to quarter 2, the prevention costs as a percent of sales by by C-2 % C-3 by %
