Question
In: Accounting
A quality control activity analysis indicated the following four activity costs of a manufacturing department: 1...
A quality control activity analysis indicated the following four activity costs of a manufacturing department:
|
1 |
Rework |
$37,440.00 |
|
2 |
Inspecting incoming raw materials |
51,840.00 |
|
3 |
Warranty work |
25,920.00 |
|
4 |
Process improvement effort |
172,800.00 |
|
5 |
Total |
$288,000.00 |
| Amount Descriptions | |
| Appraisal | |
| External failure | |
| Internal failure | |
| Lead time | |
| Prevention | |
| Setup time |
Sales are $1,200,000. Prepare a cost of quality report. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Round percents to one decimal place.
|
Cost of Quality Report |
|
1 |
Quality Cost Classification |
Quality Cost |
Percent of Total Quality Cost |
Percent of Total Sales |
|
2 |
||||
|
3 |
||||
|
4 |
||||
|
5 |
||||
|
6 |
Total |
Solutions
ekkarill92 answered 3 years agoRelated Solutions
A quality control activity analysis indicated the following four activity costs of a hotel: Inspecting cleanliness...
A quality control activity analysis indicated the following four
activity costs of a hotel:
Inspecting cleanliness of rooms
$468,000
Processing lost customer reservations
156,000
Rework incorrectly prepared room service meal
78,000
Employee training
78,000
Total
$780,000
Sales are $3,900,000. 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...
A quality control activity analysis indicated the following four
activity costs of a hotel.
Verifying credit card information
523,600
Customer service training
261,800
Discounting room rates due to poor customer service
130,900
Correcting charges to customer invoices
392,700
Total
$1,309,000
Sales are $7,700,000 for the year. Prepare a cost of quality
report.
Present percentage values to one decimal place.
Cost of Quality Report
Quality Cost Classification
Quality Cost
Percent of Total Quality Cost
Percent of Total Sales
Prevention
$
%...
A quality control activity analysis indicated the following four activity costs of a hotel: Inspecting cleanliness...
A quality control activity analysis indicated the following four
activity costs of a hotel:
Inspecting cleanliness of rooms
$108,000
Processing lost customer reservations
450,000
Rework incorrectly prepared room service meal
54,000
Employee training
288,000
Total
$900,000
Sales are $3,000,000. 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...
Schedule of Activity Costs Quality Control Activities Activity Cost Product testing $55,000 Assessing vendor quality 26,000...
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 provided schedule of activity costs, compute the
percentage of non-value-added activities. Round to one decimal
place.
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Schedule of Activity Costs Quality Control Activities Activity Cost Process audits $48,600 Training of machine operators...
Schedule of Activity Costs
Quality Control Activities
Activity Cost
Process audits
$48,600
Training of machine operators
26,900
Processing returned products
19,800
Scrap processing (disposal)
25,700
Rework
6,600
Preventative maintenance
31,100
Product design
45,200
Warranty work
8,000
Finished goods inspection
23,600
From the above schedule of activity costs, determine the
non-value-added costs.
$52,100
$120,900
$60,100
$235,500
Read the following control activity and answer the questions below: The audit client indicated that they...
Read the following control activity and answer the questions
below:
The audit client indicated that they reviewed actual sales
revenue data against forecasts on a monthly basis.
Required:
a) Identify what type of control activity this is and state
whether it is a preventative or detective control.
b) Suggest an appropriate test of control for this specific
control activity.
c) For part 2 above, identify which audit procedure is being
used in your suggested test of control.
d) Assume that...
The following are quality control data for a manufacturing process at Kensport Chemical Company. The data...
The following are quality control data for a manufacturing
process at Kensport Chemical Company. The data show the temperature
in degrees centigrade at five points in time during a manufacturing
cycle.
Sample
x
R
1
95.72
1.0
2
95.24
0.9
3
95.18
0.9
4
95.42
0.4
5
95.46
0.5
6
95.32
1.1
7
95.40
1.0
8
95.44
0.3
9
95.08
0.2
10
95.50
0.6
11
95.80
0.6
12
95.22
0.2
13
95.60
1.3
14
95.22
0.5
15
95.04
0.8
16...
The following are quality control data for a manufacturing process at Kensport Chemical Company. The data...
The following are quality control data for a manufacturing
process at Kensport Chemical Company. The data show the temperature
in degrees centigrade at five points in time during a manufacturing
cycle.
Sample
x
R
1
95.72
1.0
2
95.24
0.9
3
95.18
0.9
4
95.46
0.4
5
95.46
0.5
6
95.32
1.1
7
95.40
0.9
8
95.44
0.3
9
95.08
0.2
10
95.50
0.6
11
95.80
0.6
12
95.22
0.2
13
95.56
1.3
14
95.22
0.6
15
95.04
0.8
16...
The following are quality control data for a manufacturing process at Kensport Chemical Company. The data...
The following are quality control data for a manufacturing
process at Kensport Chemical Company. The data show the temperature
in degrees centigrade at five points in time during a manufacturing
cycle.
Sample
x
R
1
95.72
1.0
2
95.24
0.9
3
95.18
0.7
4
95.42
0.4
5
95.46
0.5
6
95.32
1.1
7
95.40
0.9
8
95.44
0.3
9
95.08
0.2
10
95.50
0.6
11
95.80
0.6
12
95.22
0.2
13
95.60
1.3
14
95.22
0.4
15
95.04
0.8
16...
The following are quality control data for a manufacturing process at Bensdork Chemical Company. The data...
The following are quality control data for a manufacturing
process at Bensdork Chemical Company. The data show the temperature
in degrees centigrade at five points in time during a manufacturing
cycle.
Sample
x
R
1
95.72
1.0
2
95.24
0.9
3
95.18
0.8
4
95.46
0.4
5
95.46
0.5
6
95.32
1.1
7
95.40
0.8
8
95.44
0.3
9
95.08
0.2
10
95.50
0.6
11
95.80
0.6
12
95.22
0.2
13
95.60
1.3
14
95.22
0.4
15
95.04
0.8
16...
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