Three Rivers Inc. provides cable TV and Internet service to the local community. The activities and activity costs of Three Rivers are identified as follows:
Cost of Quality and Value Added/Non-Value Added Reports for a Service Company Three Rivers Inc. provides cable TV and Internet service to the local community. The activities and activity costs of Three Rivers are identified as follows: a. Identify the cost of quality classification for each activity and whether the activity is value-added or non-value-added. Activity Cost Value Added/ Non-Value Added Classification Quality Cost Classification Quality Control Activities Billing error correction $31,300 Cable signal testing 69,000 Reinstalling service installed incorrectly the first time) 67,300 Repairing satellite equipment 18,400 Repairing underground cable connections to the customer 20,300 Replacing old technology cable with higher quality cable 90,800 Replacing old technology signal switches with higher quality switches 103,800 Responding to customer home repair requests 37,500 Training employees 21,600 Total activity cost $460,000 b. Prepare a cost of quality report. Assume that sales are $2,300,000. If required, round percentages to one decimal place. Cost of Quality and Value Added/Non-Value Added Reports for a Service Company Three Rivers Inc. provides cable TV and Internet service to the local community. The activities and activity costs of Three Rivers are identified as follows: a. Identify the cost of quality classification for each activity and whether the activity is value-added or non-value-added. Activity Cost Value Added/ Non-Value Added Classification Quality Cost Classification Quality Control Activities Billing error correction $31,300 Cable signal testing 69,000 Reinstalling service installed incorrectly the first time) 67,300 Repairing satellite equipment 18,400 Repairing underground cable connections to the customer 20,300 Replacing old technology cable with higher quality cable 90,800 Replacing old technology signal switches with higher quality switches 103,800 Responding to customer home repair requests 37,500 Training employees 21,600 Total activity cost $460,000 b. Prepare a cost of quality report. Assume that sales are $2,300,000. If required, round percentages to one decimal place
