Cost of Quality Report A quality control activity analysis indicated the following four activity costs of a hotel: Inspecting cleanliness of rooms $175,000 Processing lost customer reservations 40,000 Rework incorrectly prepared room service meal 20,000 Employee training 265,000 Total $500,000 Sales are $4,000,000. Prepare a cost of quality report. Round percent of sales to one decimal place. Cost of Quality Report Quality Cost Classification Percent of Total Percent of Quality Cost Quality Cost Total Sales Prevention Appraisal % Internal failure % External failure % Totals

Cost of Quality Report A quality control activity analysis indicated the following four activity costs of a hotel: Inspecting cleanliness of rooms $175,000 Processing lost customer reservations 40,000 Rework incorrectly prepared room service meal 20,000 Employee training 265,000 Total $500,000 Sales are $4,000,000. Prepare a cost of quality report. Round percent of sales to one decimal place. Cost of Quality Report Quality Cost Classification Percent of Total Percent of Quality Cost Quality Cost Total Sales Prevention Appraisal % Internal failure % External failure % Totals

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter13: Lean Manufacturing And Activity Analysis

Section: Chapter Questions

Problem 4BE

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A quality control activity analysis indicated the following four activity costs of a hotel: Inspecting cleanliness of rooms $181,350 Processing lost customer reservations 60,450 Rework incorrectly prepared room service meal 241,800 Employee training 120,900 Total $604,500 Sales are $3,100,000. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below. Open spreadsheet Prepare a cost of quality report. Round the percents of total quality cost to the nearest whole number and the percents of total sales to one decimal place. Cost of Quality Report Quality Cost Classification Quality Cost Percent of Total Quality Cost Percent of Total Sales Prevention $ % % Appraisal % % Internal failure % % External failure % % Total $ % %
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Quality Cost Report Kang Company reported sales of $3,240,000 in 20x5. At the end of the calendar year, the following quality costs were reported: Design review $162,000 Recalls 54,000 Reinspection 27,000 Materials inspection 21,600 Quality training 54,000 Process acceptance 27,000 Scrap 18,900 Lost sales 108,000 Product inspection 16,200 Returned goods 51,300 Required: Question Content Area 1. Prepare a quality cost report. Round percentages to two decimal places, if rounding is required. For example, 5.79% would be entered as "5.79". Kang CompanyQuality Cost ReportFor the Year Ended December 31, 20x5 Quality Costs Total Quality Cost Percentage of Sales Prevention costs: $- Select - - Select - $- Select - - Select -% Appraisal costs: $- Select - - Select - - Select - - Select - - Select - Internal failure costs: $- Select - - Select - - Select - - Select - External…
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Use the Excel Pareto template to investigate the quality losses in a paper mill shown below. Category Annual Loss ($) Downtime 40,000 Testing costs 21,000 Rejected paper 480,000 Odd lot 86,000 Excess inspection 32,000 Customer complaints 134,000 High material costs 59,000 The data has been sorted for your convenience. Calculate the percent of total complaints for each category of errors. Round your answers to two decimal places. Name Amount Percent of Total Rejected paper $480,000 % Customer complaints $134,000 % Odd lot $86,000 % High material costs $59,000 % Downtime $40,000 % Excess inspection $32,000 % Testing costs $21,000 % The correct Pareto diagram is . A. B. C. D.
Quality Cost Report, Taguchi Loss Function Kathy Shorts, president of Oliver Company, was concerned with the trend in sales and profitability. The company had been losing customers at an alarming rate. Furthermore, the company was barely breaking even. Investigation revealed that poor quality was at the root of the problem. At the end of 20x5, Kathy decided to begin a quality improvement program. As a first step, she identified the following costs in the accounting records as quality related: 20x5 Sales (644,000 units @ $100) $64,400,000 Retesting 2,125,200 Rework 2,382,800 Vendor certification 901,600 Consumer complaints 1,545,600 Warranty 2,382,800 Test labor 1,932,000 Inspection labor 1,416,800 Design reviews 257,600 Required: 1. Prepare a quality cost report by quality cost category. Round percentages to one decimal place if rounding is required. For example, 5.78% would be entered as "5.8". Oliver Company Quality Cost Report For the Year…