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Sa Grayson Industries manufactures freezers. Here is some information about its LX17 line of freezers over the past year: (Click the icon to view the
Sa Grayson Industries manufactures freezers. Here is some information about its "LX17" line of freezers over the past year: (Click the icon to view the information.) Read the requirements. Requirements Requirement 1. Prepare a Cost of Quality ( COQ. (Round the percentage to the one tent| zero.) 1. Prepare a Cost of Quality (COQ) report. In addition to calculating the total costs of each category, calculate the percentage of COQ category of the total COQ. 2. Why would the variable repair cost at the customers' home generally be higher than the "in factory" rework cost? 3. How can use of the COQ report lead to improvements in the production process or in the quality of the product itself? ategory of the abel or enter a Grayson Cost of Quality Report Prevention Costs: Print Done Data table Number of units manufactured and sold .. 2,500 units Selling price per unit .. $ 1,600 Variable manufacturing and selling costs per unit $ 700 Hours spent by engineers improving design. 1,300 1.0 hours 7% Testing and inspection hours per unit... Percentage of units reworked in the plant after inspection... Average variable rework costs per freezer. Percentage of units repaired under warranty at customers' homes.. Averade variable repair costs at customers' homes per freezer ... . $ 480 5% $ 560 Data table Hours spent by engineers improving design. 1,300 1.0 hours 7% $ 480 Testing and inspection hours per unit ... Percentage of units reworked in the plant after inspection... Average variable rework costs per freezer... Percentage of units repaired under warranty at customers' homes... Average variable repair costs at customers' homes per freezer. Estimated lost sales due to quality.reputation. . 5% $ 560 450 units Design engineer's labor rate (includes benefits and payroll taxes) ........ $80 per hour Inspection costs per hour. $20 per hour
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