Question
In: Accounting
XWS Company produces machinery. Information on sales and quality costs - relating to parts A, B...
XWS Company produces machinery.
Information on sales and quality costs - relating to parts A, B
& C:
Sales $1,250,000
Inspection $40,000
Scrap $5,000
Rework $22,500
Quality training $10,000
Warranty work $50,000
Customer complaints $15,000
Information relating to a proposed new machine - relating to all
parts other than A, B & C:
Direct materials costs (per machine) $5,000
Direct labor costs (per machine) $1,500
Overhead costs (per machine) $2,000
Estimated selling price (per machine) $10,000
Target profit (as a percentage of selling price)
13
SQ4
Required
A. classify and aggregate (total-up) each of the
quality-related costs under the four cost of quality (COQ)
categories.
B. the percentage of sales that is accounted for by
quality-related costs; total & per CoQ category
C. the profit increase the company could have achieved
if its quality-related costs could have been reduced from your
calculation in question part B to the following a CoQ as a
percentage of sales result: 5%
D. the company's target cost for the new
machine Activate Windows
E. comment on whether the company should manufacture
the new machine - specify “yes' or 'no' and in one sentence justify
your conclusion
F. list 2 potential benefits and 2 potential risks of
just in time production
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Quality Brick Company produces bricks in two processing departments—Molding and Firing. Information relating to the company’s...
Quality Brick Company produces bricks in two processing
departments—Molding and Firing. Information relating to the
company’s operations in March follows:
a.
Raw materials were issued for use in production: Molding
Department, $29,400; and Firing Department, $4,500.
b.
Direct labor costs were incurred: Molding Department, $18,900;
and Firing Department, $5,100.
c.
Manufacturing overhead was applied: Molding Department, $22,200;
and Firing Department, $36,800.
d.
Unfired, molded bricks were transferred from the Molding
Department to the Firing Department. According to the company's
process...
Quality Brick Company produces bricks in two processing departments—Molding and Firing. Information relating to the company’s...
Quality Brick Company produces bricks in two processing
departments—Molding and Firing. Information relating to the
company’s operations in March follows:
Raw materials used in production: Molding Department, $26,900;
and Firing Department, $4,000.
Direct labor costs incurred: Molding Department, $17,000; and
Firing Department, $4,500.
Manufacturing overhead was applied: Molding Department, $22,200;
and Firing Department, $36,300.
Unfired, molded bricks were transferred from the Molding
Department to the Firing Department. According to the company’s
process costing system, the cost of the unfired, molded...
Quality Brick Company produces bricks in two processing departments—Molding and Firing. Information relating to the company’s...
Quality Brick Company produces bricks in two processing
departments—Molding and Firing. Information relating to the
company’s operations in March follows:
a.
Raw materials were issued for use in production: Molding
Department, $23,000; and Firing Department, $8,000.
b.
Direct labor costs were incurred: Molding Department, $12,000;
and Firing Department, $7,000.
c.
Manufacturing overhead was applied: Molding Department, $25,000;
and Firing Department, $37,000.
d.
Unfired, molded bricks were transferred from the Molding
Department to the Firing Department. According to the company's
process...
Quality Brick Company produces bricks in two processing departments—Molding and Firing. Information relating to the company’s...
Quality Brick Company produces bricks in two processing
departments—Molding and Firing. Information relating to the
company’s operations in March follows:
Raw materials used in production: Molding Department, $26,100;
and Firing Department, $4,300.
Direct labor costs incurred: Molding Department, $19,900; and
Firing Department, $4,700.
Manufacturing overhead was applied: Molding Department,
$23,100; and Firing Department, $36,200.
Unfired, molded bricks were transferred from the Molding
Department to the Firing Department. According to the company’s
process costing system, the cost of the unfired, molded...
Quality Brick Company produces bricks in two processing departments—Molding and Firing. Information relating to the company’s...
Quality Brick Company produces bricks in two processing
departments—Molding and Firing. Information relating to the
company’s operations in March follows:
Raw materials used in production: Molding Department, $29,000;
and Firing Department, $5,600.
Direct labor costs incurred: Molding Department, $17,600; and
Firing Department, $5,600.
Manufacturing overhead was applied: Molding Department,
$25,700; and Firing Department, $35,700.
Unfired, molded bricks were transferred from the Molding
Department to the Firing Department. According to the company’s
process costing system, the cost of the unfired, molded...
2. Using the worksheet, Quality, determine which wing of the company produces higher quality parts: Old...
2. Using the worksheet, Quality, determine which wing of the
company produces higher quality parts: Old Wing
and Job-enriched Wing.
a. Which statistical analysis should be used to answer this
question?
b. What are the null and alternative hypotheses?
c. Conduct the appropriate statistical analysis on Excel or
StatCrunch. Provide a copy of your output.
d. Using your output, what is the p-value?
e. Using your output, what is the test statistic?
f. What is your decision?
g. Based on...
2. Using the worksheet, Quality, determine which wing of the company produces higher quality parts: Old...
2. Using the worksheet, Quality, determine which wing of the
company produces higher quality parts: Old Wing
and Job-enriched Wing. Assume Alpha 0.01 round to four
decimals.
a. Which statistical analysis should be used to answer this
question?
b. What are the null and alternative hypotheses?
c. Conduct the appropriate statistical analysis on Excel or
StatCrunch. Provide a copy of your output.
d. Using your output, what is the p-value?
e. Using your output, what is the test statistic?
f....
Using the worksheet, Quality, determine which wing of the company produces higher quality parts: Old Wing...
Using the worksheet, Quality, determine which wing of the
company produces higher quality parts: Old Wing
and Job-enriched Wing. Alpha Value= 0.01
a. Which statistical analysis should be used to answer this
question?
b. What are the null and alternative hypotheses?
c. Conduct the appropriate statistical analysis on Excel or
StatCrunch. Provide a copy of your output.
d. Using your output, what is the p-value?
e. Using your output, what is the test statistic?
f. What is your decision?
g....
Quality Improvement and Profitability Objective Gagnon Company reported the following sales and quality costs for the...
Quality Improvement and Profitability Objective Gagnon Company
reported the following sales and quality costs for the past four
years.
Assume that all quality costs are variable and that all changes
in the quality cost ratios are due to a quality improvement
program.
Year Sales Revenues Quality Costs as a Percent of Revenues
(I only need the answer to the third required part in bold
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Year 1 $9,600,000 30%
Year 2 10,400,000 27%
Year 3 12,320,000 23%
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Standard Quantity
or Hours
Standard Price
or Rate
Standard
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Direct materials
?
$
6.00
per yard
$
?
Direct labor
?
?
?
Variable manufacturing overhead
?
$
2
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Total standard cost per unit
$
?
Overhead is applied to production on the basis of direct
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