Cost of quality reportA quality control activity analysis indicated the following four activity costs of a hotel:Inspecting cleanliness of roomsProcessing lost customer reservationsRework incorrectly prepared room service mealEmployee trainingTotalSales are $4,300,000.This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input youranswers in the question below.XOpen spreadsheetPrepare a cost of quality report. Round the percents of total quality cost to the nearest whole number and the percents of total sales to onedecimal place.Quality Cost ClassificationPreventionAppraisalInternal failureExternal failureTotalCost of Quality ReportQuality Cost265,000 XPercent of Total QualityCost%%%$174,150290,25058,05058,050$580,500%%Percent of Total Sales%%%%%

Types of Quality Cost 1. Appraisal Cost: Appraisal cost is incurred by the Business Entities to…

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. Quality Cost Classification Prevention Appraisal Internal failure External failure Total Cost of Quality Report Quality Cost 265,000 X 0000 Percent of Total Quality Cost % 0.0.0.0 % % Percent of Total Sales % % % % %

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. Quality Cost Classification Prevention Appraisal Internal failure External failure Total Cost of Quality Report Quality Cost 265,000 X 0000 Percent of Total Quality Cost % 0.0.0.0 % % Percent of Total Sales % % % % %

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 4PB: Pareto chart and cost of quality report for a manufacturing company The president of Mission Inc....

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Cost of Quality Report A quality control activity analysis indicated the following four activity costs of a hotel: Inspecting cleanliness of rooms $167,400 Processing lost customer reservations 55,800 Rework incorrectly prepared room service meal 223,200 Employee training 111,600 Total $558,000 Sales are $3,100,000. Prepare a cost of quality report. Round percent of sales to one decimal place. Cost of Quality Report Quality CostClassification Quality Cost Percent of TotalQuality Cost Percent ofTotal Sales Prevention $fill in the blank 1 fill in the blank 2% fill in the blank 3% Appraisal fill in the blank 4 fill in the blank 5% fill in the blank 6% Internal failure fill in the blank 7 fill in the blank 8% fill in the blank 9% External failure fill in the blank 10 fill in the blank 11% fill in the blank 12% Total $fill in the blank 13 fill in the blank 14% fill in the blank 15%
Cost of Quality Report A quality control activity analysis indicated the following four activity costs of a hotel: Inspecting cleanliness of rooms $67,600 Processing lost customer reservations 16,900 Rework incorrectly prepared room service meal 33,800 Employee training50,700 Total$169,000 Sales are $1,300,000. Prepare a cost of quality report. Round percent of sales to one decimal place. Cost of Quality Report
Cost of Quality Report A quality control activity analysis indicated the following four activity costs of a hotel: Inspecting cleanliness of rooms $97,200 Processing lost customer reservations 48,600 Rework incorrectly prepared room service meal 291,600 Employee training 48,600 Total $486,000 Sales are $2,700,000. Prepare a cost of quality report. Round percent of sales to one decimal place.
Cost of Quality Report A quality control activity analysis indicated the following four activity costs of a hotel: Inspecting cleanliness of rooms $56,000 Processing lost customer reservations 28,000 Rework incorrectly prepared room service meal 84,000 Employee training 112,000 Total $280,000 Sales are $1,400,000. Prepare a cost of quality report. Round percent of 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 ? ? ?
A quality control activity analysis indicated the following four activity costs of a hotel. Line Item Description Amount Verifying credit card information $40,000 Customer service training 20,000 Discounting room rates due to poor customer service 16,000 Correcting charges to customer invoices 8,000 Total $84,000 Sales are $750,000 for the year. Prepare a cost of quality report. Round your answers to one decimal place, if necessary. Due to rounding there may be difference of 0.1 Quality CostClassification Quality Cost Percent of TotalQuality Cost Percent ofTotal Sales Prevention $fill in the blank 1 fill in the blank 2% fill in the blank 3% Appraisal fill in the blank 4 fill in the blank 5% fill in the blank 6% Internal failure fill in the blank 7 fill in the blank 8% fill in the blank 9% External failure fill in the blank 10 fill in the blank 11% fill in the blank 12% Totals $fill in the blank 13 fill in the blank 14% fill in the blank 15%…
A quality control activity analysis indicated the following four activity costs of a hotel: Inspecting cleanliness of rooms $172,000 Processing lost customer reservations 129,000 Rework incorrectly prepared room service meal 86,000 Employee training 43,000 Total $430,000 Sales are $4,300,000. Prepare a cost of quality report. Round percent of sales to one decimal place.
A quality control activity analysis indicated the following four activity costs of a hotel. Verifying credit card information $40,000 Customer service training 20,000 Discounting room rates due to poor customer service 16,050 Correcting charges to customer invoices 8,000 Total $84,050 Sales are $750,000 for the year. Prepare a cost of quality report. Given the report you've prepared, what is your advice to hotel management?
REVENUE CYCLE CASE STUDY __________________________________________________________________________ __________________________________________________________________________ ARCHITECT’S DEPOT (NETWORKED COMPUTER SYSTEM WITH MANUAL PROCEDURES) Architect’s Depot (AD) is an online company that supplies a range of architectural products to building contractors and private individuals. Their product line includes such items as gable vents, shutters, vinyl sidings, and decorative trim in various materials. The company employs a combination of manual procedures and a networked accounting system with distributed terminals in several departments. After years of satisfactory performance, however, AD is now experiencing operational inefficiencies and accounting errors. Your firm has been hired to evaluate AD’s business processes and internal controls. The revenue cycle is described in the following paragraph. Sales Order Procedures AD’s revenue process is initiated when a customer…
Cost of Quality and Value-Added/Non-Value-Added Reports for a Service Company Seven Seas Inc. provides cable TV and Internet service to the local community. The activities and activity costs of Seven Seas are identified. Question Content Area a. Identify the cost of quality classification for each activity and whether the activity is value-added or non-value-added. Quality Control Activities Activity Cost Quality CostClassification VA/NVA Classification Billing error correction $60,000 fill in the blank 1 of 18 fill in the blank 2 of 18 Cable signal testing 140,000 fill in the blank 3 of 18 fill in the blank 4 of 18 Reinstalling service (installed incorrectly the first time) 40,000 fill in the blank 5 of 18 fill in the blank 6 of 18 Repairing satellite equipment 50,000 fill in the blank 7 of 18 fill in the blank 8 of 18 Repairing underground cable connections to the customer 25,000 fill in the blank 9 of 18 fill in the blank 10 of 18…
Use the Excel Pareto template to investigate the quality losses in a paper mill shown below. Category Annual Loss ($) 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.
ctivity-Based Costing for a Service Business Sterling Hotel uses activity-based costing to determine the cost of servicing customers. There are three activity pools: guest check-in, room cleaning, and meal service. The activity rates associated with each activity pool are $8 per guest check-in, $25 per room cleaning, and $4 per served meal (not including food). Ginny Campbell visited the hotel for a three-night stay. Campbell had three meals in the hotel during her visit. Determine the total activity-based cost for Campbell's visit.
Regression, activity-based costing, choosing cost drivers. Sleep Late, a large hotel chain, has been using activity-based costing to determine the cost of a night’s stay at their hotels. One of the activities, “Inspection,” occurs after a customer has checked out of a hotel room. Sleep Late inspects every 10th room and has been using “number of rooms inspected” as the cost driver for inspection costs. A signicant component of inspection costs is the cost of the supplies used in each inspection.