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The manager at Rainbow International prepares a Cost of Quality report to report the following expenses: Inspection of raw material costs Warranty costs warranty claims
The manager at Rainbow International prepares a Cost of Quality report to report the following expenses: Inspection of raw material costs Warranty costs warranty claims Cost to dispose of rejected products Train hourly manufacturing personnel Recall of batch #2894 Production losses due to machine malfunctions Cost of defective products found at inspection audit Inspecting products when halfway through the production process $7,000 $300,000 $14,000 $60,000 $200,000 $20,000 $76,000 $30,000 What is the total cost of quality in the external failure cost category? A. $500,000 B. $200,000 C. $656,000 OD. $7,000 O E $234,000 Lucas Industries uses departe erhead rates to allocate its manufacturing overhead to jobs. The company has two departments: Assembly and Sanding. The Assembly Department sesental overhead rate of $35 per machine hour, while the Sanding Department uses a departmental overhead rate of $25 per dire labor hour. Job 603 used the following direct labor hours and machine hours in the two departments: Assembly Sanding Actual results Department Department Direct labor hours used 7 5. Machine hours used 9 8 The cost for direct labor is $20 per direct labor hour and the cost of the direct materials used by Job 603 is $1,600. How much manufacturing overhead would be allocated to Job 603 using the departmental overhead rates? O A. $440 B. $495 OC. $335 OD. $240
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