npany is a highly äutomatēd manufacturer. activity level company's total quality control cost equal $230,000. This amount includes equipment lease cost all fixed) and manual inspection cost of $72,000 (all variable). The remaining $100,000 of the total quality control cost consists of electronic testing (mixed). At an activity level of electronic testing cost totals $120,000. the relevant range includes all of the activity levels mentioned in this problem for the AX51793 company. s are projected for the next period, how much would the total expected quality control cost be? Choice $274,000 $247,600 $252,000 $166,000
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- Eagleson Company's quality cost report is to be based on the following data: Net cost of scrap $ 75,000 Liability arising from defective products $ 32,000 Warranty repairs and replacements $ 80,000 Re-entering data because of keying errors $ 75,000 Supplies used in testing and inspection $ 18,000 Quality data gathering, analysis, and reporting $ 62,000 Final product testing and inspection $ 21,000 Test and inspection of in-process goods $ 44,000 Systems development $ 45,000 What would be the total appraisal cost appearing on the quality cost report?Cardinal Co. has the following information related to costs of quality. Amount / Rate Units produced and sold 150,000 % units reworked 6.0% % of units returned by customers 2.5% Scheduled testing & inspection of equipment 50 hours Breakdown equipment maintenance 150 hours Product design 400 hours Cost of rework units $12 per unit Cost of customer returns $25 per unit Maintenance cost per hour $80 per hour Product design cost per hour $ 15 per hour Prepare a Cost of Quality report that classifies the costs above into the appropriate COQ category. Round all amounts to whole dollars in your solution.The Abrams Corporation incurred the following quality costs during the year: Inspections $ 35,400 Training $ 16,700 Quality planning $7,000 Maintenance $10,800 Rework $ 3,850 Warranty $8,690 Testing of equipment $8,000 Scrap $8,000 Lost sales $ 20,600 Downtime $ 10,400 Repairs $ 7,200 What are the total internal failure costs for the Abrams Corporation ?
- For its inspecting cost pool, Ellsworth, Inc. expected overhead cost of $560000 and 4000 inspections. The actual overhead cost for that cost pool was $640000 for 5000 inspections. The activity-based overhead rate used to assign the costs of the inspecting cost pool to products is $128 per inspection. $160 per inspection. $140 per inspection. $112 per inspection.Acme Enterprises, a hypothetical company that prepares its financial statements inaccordance with IFRS, manufactures tables. In 2009, the factory produced 900,000finished tables and scrapped 1,000 tables. For the finished tables, raw material costswere €9 million, direct labor conversion costs were €18 million, and productionoverhead costs were €1.8 million. Th e 1,000 scrapped tables (attributable to abnormal waste) had a total production cost of €30,000 (€10,000 raw material costs and€20,000 conversion costs; these costs are not included in the €9 million raw materialand €19.8 million total conversion costs of the finished tables). During the year,Acme spent €1 million for freight delivery charges on raw materials and €500,000 forstoring finished goods inventory. Acme does not have any work-in-progress inventoryat the end of the year. 1. What costs should be included in inventory in 2009?2. What costs should be expensed in 2009?Fuji Company is currently manufacturing part A123, producing 40,000 units The part is used in the production of several products made by the company. The cost per unit for A123 is as follows: Direct material P9.00 Direct labor 3.00 Variable manufacturing overhead 2.50 Fixed manufacturing overhead 4.00 Total P18.50 Of the total fixed overhead assigned to A123, P88,000 is avoidable (the lease of production machinery and salary of a production line supervisor–neither of which will be needed if the line is dropped). The remaining fixed overhead is a common fixed overhead. An outside supplier has offered to sell the part to Fuji for P16. There is no alternative use for the facilities currently used to produce the part. Should Fuji Company make or buy part A123? Justify your answer.
- Larsen, Inc., produces two types of electronic parts and has provided the following data: Part X12 Part YK7 Total Units produced 100,000 600,000 — Direct labor hours 30,000 70,000 100,000 Machine hours 50,000 300,000 350,000 Number of setups 40 80 120 Testing hours 1,000 9,000 10,000 Number of purchase orders 500 3,500 4,000 There are four activities: machining, setting up, testing, and purchasing. Required: Calculate the activity consumption ratios for each product. Calculate the consumption ratios for the plantwide rate (direct labor hours). When compared with the activity ratios, what can you say about the relative accuracy of a plant wide rate? Which product is under costed? What if the machine hours were used…Roundhead Corporation’s 2021 manufacturing costs were as follows: Prime costs P 4,000,000 Depreciation of factory equipment 600,000 Depreciation of factory building 400,000 Salaries of janitor assigned in factory premises 120,000 Salesmen’s commission based on sales 200,000 Depreciation for delivery van 150,000 How much of these costs should be considered product / manufacturing costs or inventoried for external reporting purposes? Group of answer choices P 5,470,000 P 5,120,000 P 4,120,000 P 4,000,000Charles Berkle is the manager of Nogain Manufacturing and is interested in doing a cost of quality analysis. The following cost and revenue data are available for the most recent year ended December 31. Sales revenue $ 250,000 Cost of goods sold 140,000 Warranty expense 20,000 Inspection costs 14,000 Scrap and rework 7,800 Product returns due to defects 6,000 Depreciation expense 10,000 Machine maintenance expense 2,700 Wage expense 35,000 Machine breakdown costs 4,000 Estimated lost sales due to poor quality 5,000 a. Classify each of these costs into the four quality cost categories and prepare a cost of quality report for Nogain. b. What percentage of sales revenue is being spent on prevention and appraisal activities? c. What percentage of sales revenue is being spent on internal and external failure costs?
- Larsen, Inc., produces two types of electronic parts and has provided the following data: PartX12 PartYK7 Total Units produced 100,000 600,000 - Direct labour hours 30,000 70,000 100,000 Machine hours 50,000 300,000 350,000 Number of setups 40 80 120 Testing hours 1,000 9,000 10,000 Number of purchase orders 500 3,500 4,000 There are four activities: machining, setting up, testing, and purchasing. Required: Calculate the activity consumption ratios for each product. Calculate the consumption ratios for the plantwide rate (direct labour hours). When comparedwith the activity ratios, what can you say about the relative accuracy of a plantwiderate? Which product is undercosted? What if the machine hours were used for the plantwide rate? Would this remove the cost distortionof a plantwide rate?Schedule of Activity Costs Quality Control Activities Activity Cost Product testing $55,000 Assessing vendor quality 26,000 Recalls 18,000 Rework 29,000 Scrap disposal 8,000 Product design 30,000 Training machine operators 46,000 Warranty work 12,000 Process audits 22,000 From the above schedule, calculate the (a) value-added and (b) non-value-added costs.Part U67 is used in one of Broce Corporation's products. The company's Accounting Department reports the following costs of producing the 16,400 units of the part that are needed every year. Per Unit Direct materials $ 3.60 Direct labor $ 4.30 Variable overhead $ 7.30 Supervisor's salary $ 8.00 Depreciation of special equipment $ 8.60 Allocated general overhead $ 5.60 An outside supplier has offered to make the part and sell it to the company for $32.00 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company. If the outside supplier's offer were accepted, only $22,400 of these allocated general overhead costs would be avoided. Required: a. Prepare a report that shows the financial impact of buying part…