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The call center of Wobegon Electric Company handles 1.13 million calls per year. The average call requires six minutes of operator time, and 40

 

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The call center of Wobegon Electric Company handles 1.13 million calls per year. The average call requires six minutes of operator time, and 40 percent of the calls require a supervisor to be involved for at least half of the call time. Operators are paid $9 per hour, and supervisors are paid $15 per hour. After Wobegon Electric engaged in process benchmarking, call times were reduced by one minute, and the number of supervisor-involved calls were reduced by 15 percent. The benchmarking study cost Wobegon Electric Company $188,000. a. What was Wobegon Electric's total labor cost and labor cost per call at the call center prior to benchmarking? $ Total labor cost Labor cost per call $ 0 0 b. What was Wobegon Electric's total labor cost and labor cost per call at the call center after benchmarking? Note: Do not round until your final answer. Note: Round the labor cost per call to two decimal places (i.e., round 3.4555 to 3.46). $ Total labor cost Labor cost per call $ 0 0 c. If the new results are expected to continue for three years, was engaging in the benchmarking study profitable to Wobegon Electric Company? Benchmarking study resulted in a $ 0 Net savings The following production information about quality costs has been gathered for June: Total defective units 864 Number of units reworked 714 Number of units returned 102 Total prevention cost $33,120 Total appraisal cost $10,200 Per-unit profit for defective units $20 Per-unit profit for good units $55 Cost to rework defective units $18 Cost to handle returned units $14 Using these data, calculate the following: a. Total cost to rework $ 12,852 b. Profit lost from not reworking all defective units $ 0 c. Cost of processing customer returns $ 1,428 d. Total failure costs $ 0 e. Total quality cost $ 0 Managers at Walla-Walla LTD want to determine the company's cost of quality. The following information has been gathered from the records for August: Defective units Units reworked Defective units returned 4,800 960 320 Appraisal costs $14,000 Cost per unit for rework $18 Prevention costs $68,000 Profit per good unit produced and sold $85 Profit per defective unit sold $43 Cost per unit for customer returns $14 Cost of warranty work $7,200 Compute the following: a. Lost profits from selling defective work $ 0 b. Total costs of failure $ 0 c. Total quality cost $0

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