answer numbers 4 5 6 with complete solution. down vote will be given to incomplete answers 4. Apple Corporation Quality cost report to be based on the following data:Liability arising from defective productsFinal product testing and inspectionsStatistical process control activitiesReturn arising from quality problemsTest and inspection of incoming materialsQuality circlesRework labor and overheadP57,00022,00013,00012,00082,00063,00070,00080,00010,000Test and inspection of in-process goodsNet cost of scrapWhat would be the total prevention costs appearing in the quality cost report?5. The information relates to the break-even point of Caribels Corp. Totalsales, P120,000;Total fixed costs and expenses, P30,000. If the companygenerates net operating profit of P15,000, what will be its total peso salesto generate?6. At an activity level of 9,200 machine hours in a month, Yakavaka Corp's totalvariable production engineering cost is P761,300 and its total fixedproduction engineering cost is P154,100. What would be the totalproduction engineering cost per unit both fixed and variable at an activitylevel of 9,500 machines hours in a month. Assume that this level is withinthe relevant range.

As per the guidelines, only one question is allowed to be solved. Please resubmit the remaining…

. Apple Corporation Quality cost report to be based on the following data: Liability arising from defective products Final product testing and inspections Statistical process control activities Return arising from quality problems Test and inspection of incoming materials Quality circles Rework labor and overhead Test and inspection of in-process goods Net cost of scrap P57,000 22,000 13,000 12,000 82,000 63,000 70,000 80,000 10,000

. Apple Corporation Quality cost report to be based on the following data: Liability arising from defective products Final product testing and inspections Statistical process control activities Return arising from quality problems Test and inspection of incoming materials Quality circles Rework labor and overhead Test and inspection of in-process goods Net cost of scrap P57,000 22,000 13,000 12,000 82,000 63,000 70,000 80,000 10,000

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter27: 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....

See similar textbooks

Similar questions

Requirement 1. Classify each cost as value-added, non-value-added, or in the gray area between. a. Materials and labor for servicing machine tools b. Rework costs c. Expediting costs caused by work delays d. Materials-handling costs e. Materials-procurement and inspection costs f. Preventive maintenance of equipment g. Breakdown maintenance of equipment Requirement 2. For any cost classified in the gray area, assume 96% is value-added and 4% is non-value-added. How much of the total of all seven costs is value-added and how much is non-value-added? Compute the total cost for the value-added and nonvalue-added costs, then compute what percentage of the total is value-added and how much is non-value-added. Total percent Total cost of total costs Value-added % Non-value-added % Total costs Requirement 3.…
MKD Company's quality cost report is to be based on the following data: 3,550,000 Test and inspection of incoming materials Supplies used in testing and inspection 2,550,000 Re-entering data because of keying errors Statistical process control activities Technical support provided to suppliers 3,000,000 4,100,000 4,550,000 Disposal of defective products Lost sales due to poor quality 3,000,000 4,350,000 Net cost of crap 4,250,000 Warranty repairs and replacements 3,500,000 Required: Prepare a Quality Cost Report in good from with separate sections for prevention costs, appraisal costs, internal failure costs, and external failure costs
Schedule of Activity Costs Quality Control Activities Process audits Training of machine operators Processing returned products Scrap processing (disposal) Rework Preventative maintenance Product design Warranty work Finished goods inspection Activity Cost $51,900 29,900 19,900 25,700 8,600 31,600 41,000 6,600 22,500 From the provided schedule of activity costs, determine the internal failure costs. Oa. $101,800 Ob. $27,440 Oc. $34,300 Od. $60,800
Which of the following is a prevention cost? a. Inspection of materials. b. Continuing supplier verification. c. Prototype inspection. d. Recalls.
Which of the following quality costs is an internal failure cost? a. Inspection of reworked units b. Lost sales because of products failing to meet specifications c. Replacing a defective product d. Training production line workers in new quality procedures
Why does a company use a standard costing system? A. to identify variances from actual cost that assist them in maintaining profits B. to identify nonperformers in the workplace C. to identify what vendors are unreliable D. to identify defective materials
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.
A number of activities that are part of a company's quality control system are listed below: Required: 1. Classify the costs associated with each of these activities into one of the following categories: prevention cost, appraisal cost, internal failure cost, or external failure cost. Prevention Appraisal Cost Internal Failure External Failure Cost Activities Cost Cost a. Product testing b Product recalls C. Rework labor and overhead d. Quality circles e Downtime caused by defects f. Cost of field servicing g. Inspection of goods Quality engineering h. i. Warranty repairs j Statistical process control k. Net cost of scrap Depreciation of test equipment m. Returns and allowances arising from poor quality n. Disposal of production defects O. Technical support to suppliers р. Systems development q. Warranty replacements r. Field testing at customer site Quality training S.
E15.22) Supplier Activities Classify the following supplier-related activities as either unit level, order level or supplier level: 1. Extra machine set-ups due to late receipt of material from supplier 2. Additional production salaries caused by late delivery of components from a supplier 3. Damage to production equipment due to faulty materials 4. Costs of managing the relationship with a supplier 5. Inspecting material delivered from a supplier Costs of storing raw materials purchased from a supplier
Fabrick Company's quality cost report is to be based on the following data: Lost sales due to poor quality Quality data gathering, analysis, and reporting Net cost of spoilage Re-entering data because of keying errors Test and inspection of in-process goods Final product testing and inspection Statistical process control activities Returns arising from quality problems Downtime caused by quality problems $ 20,30 $ 63,306 $ 60,200 $ 24,100 $ 11,200 $ 44,400 $ 43,100 $ 36,100 $ 59,800 What would be the total appraisal cost appearing on the quality cost report? Multiple Choice $162,000 $91,300 $71.400 $55.600 [O ASUS ge here to search
Schedule of Activity Costs Quality Control Activities Product testing Assessing vendor quality Recalls Rework Scrap disposal Product design Training machine operators Warranty work Process audits Activity Cost $55,000 26,000 18,000 29,000 8,000 30,000 46,000 12,000 22,000 From the provided schedule of activity costs, determine the internal failure costs.
Matching cost-of-quality examples to categories Sammy, Inc. manufactures motor scooters. For each of the following examples of quality costs, indicate which of the following quality cost categories each example represents: prevention costs, appraisal costs, internal failure costs, or external failure costs. Preventive maintenance on machinery Direct materials, direct labor, and manufacturing overhead incurred to rework a defective scooter that is detected in-house through inspection Lost profits from lost sales if the company’s reputation is hurt because customers previously purchased a poor-quality scooter Cost of inspecting raw materials, such as chassis and wheels Working with suppliers to achieve on-time delivery of defect-free raw materials Cost of warranty repairs on a scooter that malfunctions at a customer’s location Costs of testing durability of the vinyl Cost to reinspect reworked scooters