Schedule of Activity Costs Quality Control Activities Process audits $48,300 Training of machine operators 28,200 Processing returned products 20,700 Scrap processing (disposal) 24,200 Rework 8,900 Preventative maintenance 29,300 Product design 43,300 Warranty work 10,000 Finished goods inspection 22,800 From the above schedule of activity costs, determine the value-adde Oa. $235,700 Ob. $171,900 Oc. $149,100 Od. $181,900 Activity Cost

Schedule of Activity Costs Quality Control Activities Process audits $48,300 Training of machine operators 28,200 Processing returned products 20,700 Scrap processing (disposal) 24,200 Rework 8,900 Preventative maintenance 29,300 Product design 43,300 Warranty work 10,000 Finished goods inspection 22,800 From the above schedule of activity costs, determine the value-adde Oa. $235,700 Ob. $171,900 Oc. $149,100 Od. $181,900 Activity Cost

Name: Schedule of Activity CostsQuality Control ActivitiesProcess audits$48
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Description: Schedule of Activity CostsQuality Control ActivitiesProcess audits$48,300Training of machine operators28,200Processing returned products20,700Scrap processing (disposal)24,200Rework8,900Preventative maintenance29,300Product design43,300Warranty work

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 5BE

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Pareto chart and cost of quality report for a manufacturing company The president of Mission Inc. has been concerned about the growth in costs over the last several years. The president asked the controller to perform an activity analysis to gain a better insight into these costs. The activity analysis revealed the following: The production process is complicated by quality problems, requiring the production manager to expedite production and dispose of scrap. Instructions 1. Prepare a Pareto chart of the company activities. 2. Classify the activities into prevention, appraisal, internal failure, external failure, and not costs of quality (producing product). Classify the activities into value-added and non-value-added activities. 3. Use the activity cost information to determine the percentages of total costs that are prevention, appraisal, internal failure, external failure, and not costs of quality. 4. Determine the percentages of total costs that are value-added and non-value-added. 5. Interpret the information.
HELP WITH CORRECT ANSWER AND WORKING Schedule of Activity CostsQuality Control ActivitiesActivity CostProcess audits$48,200Training of machine operators27,000Processing returned products16,700Scrap processing (disposal)25,200Rework8,900Preventative maintenance28,100Product design43,800Warranty work6,900Finished goods inspection23,000 From the above schedule of activity costs, determine the total activity cost. a. $227,800 b. $99,000 c. $275,638 d. $149,700
Schedule of Activity Costs Quality Control Activities Activity Cost Process audits $50,400 Training of machine operators 26,300 Processing returned products 15,700 Scrap processing (disposal) 24,100 Rework 7,500 Preventative maintenance 28,800 Product design 44,900 Warranty work 9,400 Finished goods inspection 22,300 From the provided schedule of activity costs, determine the non-value-added costs. a.$114,500 b.$56,700 c.$229,400 d.$47,300
Schedule of Activity Costs Quality Control Activities Activity Cost Process audits $51,100     Training of machine operators 26,500     Processing returned products 19,300     Scrap processing (disposal) 25,900     Rework 6,500     Preventative maintenance 29,500     Product design 45,700     Warranty work 7,500     Finished goods inspection 23,200     From the provided schedule of activity costs, determine the appraisal costs. a.$176,000 b.$74,300 c.$51,100 d.$119,500
Quality Control Activities Activity Cost Process audits $50,300     Training of machine operators 27,900     Processing returned products 16,700     Scrap processing (disposal) 25,700     Rework 8,400     Preventative maintenance 27,600     Product design 42,100     Warranty work 6,900     Finished goods inspection 22,500     From the provided schedule of activity costs, determine the prevention costs. a. $97,600 b. $114,300 c. $106,000 d. $55,500
Quality Control Activities Activity Cost Product testing $55,000 Assessing vendor quality 26,000 Recalls 18,000 Rework 29,000 Scrap disposal    8,000 Product design 30,000 Training machine operators 46,000 Warranty work 12,000 Process audits 22,000 From the provided schedule of activity costs, determine the (a) prevention and (b) appraisal costs.a. Prevention costs$b. Appraisal costs$
Schedule of Activity Costs Quality Control Activities Activity Cost Process audits $50,000 Training of machine operators 28,000 Processing returned products 19,000 Scrap processing (disposal) 25,000 Rework 8,000 Preventative maintenance 30,000 Product design 46,000 Warranty work 12,000 Finished goods inspection 23,000 From the above schedule of activity costs, determine the external failure costs.
Activity-Based Environmental Cost Assignments Pinter Company had the following environmental activities and product information: 1. Environmental activity costs Activity Costs Design products (to reduce pollution) $ 153,900 Test for contamination 273,600 Treat toxic waste 855,000 Operate pollution control equipment 684,000 2. Driver data Solvent X Solvent Y Design hours 3,400 2,300 Testing hours 6,100 9,100 Pounds of waste 700 18,300 Machine hours 3,400 72,600 3. Other production data Solvent X Solvent Y Nonenvironmental production costs $3,344,000 $3,876,000 Units produced 380,000 380,000 Design products 27 per design hour Testing 18 per test hour Treating waste 45 per pound of waste Operating equipment 9 per machine hour Required: 2. Determine the unit environmental and unit costs of each product using ABC.…
Activity-Based Environmental Cost Assignments Pinter Company had the following environmental activities and product information: 1. Environmental activity costs Activity Costs Design products (to reduce pollution) $ 129,600 Test for contamination 230,400 Treat toxic waste 720,000 Operate pollution control equipment 576,000 2. Driver data Solvent X Solvent Y Design hours 2,900 1,900 Testing hours 5,100 7,700 Pounds of waste 600 15,400 Machine hours 2,900 61,100 3. Other production data Solvent X Solvent Y Nonenvironmental production costs $2,176,000 $4,128,000 Units produced 320,000 320,000 What if the design costs increased to $219,600 and the cost of toxic waste decreased to $360,000? Assume that Solvent Y uses 3,800 out of 7,600 design hours. Also assume that waste is cut by 50 percent and that Solvent Y is responsible for…
Activity-Based Environmental Cost Assignments Pinter Company had the following environmental activities and product information: 1. Environmental activity costs Activity Costs Design products (to reduce pollution) $ 129,600 Test for contamination 230,400 Treat toxic waste 720,000 Operate pollution control equipment 576,000 2. Driver data Solvent X Solvent Y Design hours 2,900 1,900 Testing hours 5,100 7,700 Pounds of waste 600 15,400 Machine hours 2,900 61,100 3. Other production data Solvent X Solvent Y Nonenvironmental production costs $2,176,000 $4,128,000 Units produced 320,000 320,000 4. Activity rates that will be used to assign environmental costs to products. Design Produts 27 per design hour Testing 18 per test hour Treating waste 45 per pound of waste Operating equipment 9 per machine hour 1. Determine the unit…
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.
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?