The following table lists all costs of quality incurred by Sam’s Surf Shop last year. What was Sam’s appraisal cost for quality last year?Annual inspection costs $ 155,000Annual cost of scrap materials 286,000Annual rework cost 34,679Annual cost of quality training 456,000Annual warranty cost 1,546,000Annual testing cost 543,000

The following table lists all costs of quality incurred by Sam’s Surf Shop last year. What was Sam’s appraisal cost for quality last year?Annual inspection costs $ 155,000Annual cost of scrap materials 286,000Annual rework cost 34,679Annual cost of quality training 456,000Annual warranty cost 1,546,000Annual testing cost 543,000

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 4EA: Hicks Contracting collects and analyzes cost data in order to track the cost of installing decks on...

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SHERA Corporation incurred the following quality costs for the year ended 2024: Cost of quality training $10,569 Cost of rework labor and overhead $14,498 Cost of field servicing $12,905 Cost of recalled product $10,209 Downtime due to rework $10,018 Product testing $11,289 Inspection of goods $13,920 Warranty replacements $14,348 Quality engineering $12,244 Determine the total prevention cost.
At the beginning of the year, Kowalski Company initiated a quality improvement program. The program was successful in reducing scrap and rework costs. To help assess the impact of the quality improvement program, the following data were collected for the current and preceding years: Preceding Year Current Year Sales $3,000,000 $3,000,000 Quality training 3,000 4,500 Material inspections 7,500 12,000 Scrap 60,000 45,000 Rework 120,000 75,000 Product inspection 15,000 30,000 Product warranty 105,000 82,500 If quality costs had been reduced to 2.5 percent of sales in the current year, profits would have increased by a.$174,000. b.$91,500. c.$37,500. d.$255,000.
At the beginning of the year, Cinnabar Company initiated an environmental cost reduction program. To help assess the impact of the environmental cost reduction improvement program, the following data were collected for the year: Operating costs $2,500,000 Designing products 2,500 Auditing environmental activities 6,000 Recycling products 22,000 Disposing of toxic waste 37,000 Testing for contamination 15,000 Cleaning up oil spills 41,500 Which of the following expresses the environmental costs incurred on prevention activity as a percentage of operating costs (rounded to two decimal places)? a. 0.98% b. 0.15% c. 2.46% d. 4.96%
You are given the following environmental quality-related costs: Employee training $ 180,000 Product design 220,000 Supplier certification 80,000 Process inspection 360,000 Depreciation—pollution-control equipment 480,000 Maintain pollution-control equipment 280,000 Clean up polluted lake 580,000 Restore land after use 780,000 Property damage claim 680,000 Required: 1. Prepare a cost-of-quality (COQ) report of environmental management for the year. Determine subtotals for each of the four reporting categories, and express each subtotal as a percentage of total operating expenses ($10,000,000) for the year. (Hint: Classify the pollution-control costs as internal failure costs, under the assumption that the process pollutes and that the pollution-control equipment used by the company controls the release of pollutants into the environment.) (Round your percentage answers to 1 decimal place.)
The Abrams Corporation incurred the following quality costs during the year: Inspections $ 35,400 Training $ 16,700 Quality planning $7,000 Maintenance $10,800 Rework $ 3,850 Warranty $8,690 Testing of equipment $8,000 Scrap $8,000 Lost sales $ 20,600 Downtime $ 10,400 Repairs $ 7,200 What are the total internal failure costs for the Abrams Corporation ?
Prior to installing a JIT system, Grindstone Company used machine hours to assign maintenance costs to its three products of 4-inch, 6-inch, and 9-inch insulation. The maintenance costs totaled $432,000 per year. The machine hours used by each product and the quantity produced of each product are as follows: Machine Hours Quantity Produced 4-inch 5,000 15,000 rolls 6-inch 12,000 12,500 rolls 9-inch 7,000 11,200 rolls After installing JIT, three manufacturing cells were created and the cell workers were trained to perform maintenance. Maintenance costs for the three cells still totaled $432,000; however, these costs are now traceable to each cell. Cell, 4-inch $125,000 Cell, 6-inch 175,000 Cell, 9-inch 165,000 After installing JIT, the maintenance cost per roll of 6-inch insulation is a. $12.85. b. $8.67. c. $14.00. d. $17.00.
Prior to installing a JIT system, Clarendon Company used machine hours to assign maintenance costs to its three products of 6-inch, 8-inch, and 11-inch insulation. The maintenance costs totaled $400,000 per year. The machine hours used by each product and the quantity produced of each product are as follows: Machine Hours Quantity Produced 6-inch 12,000 31,250 rolls 8-inch 20,000 25,000 rolls 11-inch 18,000 12,000 rolls After installing JIT, three manufacturing cells were created and the cell workers were trained to perform maintenance. Maintenance costs for the three cells still totaled $400,000; however, these costs are now traceable to each cell. Cell, 6-inch $100,000 Cell, 8-inch 120,000 Cell, 11-inch 180,000 After installing JIT, the maintenance cost per roll of 6-inch insulation would be
Jake's Roof Repair has provided the following data concerning its costs: Wages and salaries Parts and supplies Fixed Cost per Month $20,600 Cost per Repair-Hour $15.00 $ 7.30 Equipment depreciation $ 2,750 $ 0.35 Truck operating expenses $ 5,710 $ 1.70 Rent $ 4,670 Administrative expenses $ 3,820 $ 0.50 For example, wages and salaries should be $20,600 plus $15.00 per repair-hour. The company expected to work 3,000 repair-hours in May, but actually worked 2,900 repair-hours. The company expects its sales to be $49.00 per repair-hour. Required: Compute the company's activity variances for May. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Jake's Roof Repair Activity Variances For the Month Ended May 31 Revenue Expenses: Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses Rent Administrative expenses Total expense Net…
At the beginning of the year, Devonshire Company initiated a quality improvement program. The program was successful in reducing scrap and rework costs. To help assess the impact of the quality improvement program, the following data were collected for the current and preceding years: Preceding Year Current Year Sales $2,400,000 $2,400,000 Quality training 30,000 48,000 Material inspections 7,000 8,000 Scrap 48,000 30,000 Rework 60,000 48,000 Product inspection 10,000 12,000 Product warranty 36,000 24,000 For the current year, appraisal costs are what percentage of sales? a.0.500% b.0.333% c.3.333% d.0.833%
NUBD Inc. manufactures clothing and sells these products to retail outlets. The following costs were incurred in performing quality activities at NUBD during the year: Product recall activities- 370,000 Quality training activities- 240,000 Quality improvement activities- 154,000 Warranty claim activities- 109,000 Quality inspection and testing activities- 61,000 Rework activities- 38,000 Quality data collection and reporting activities- 16,000 What is the total of the prevention costs for NUBD?
The manager at East Coast Manufacturing organizes costs to prepare the Costs of Quality report. The manger compiled the following data: Employee training $161,000 Warranty costs $185,000 Rework $263,000 Product testing $190,000 Cost of rejected units $40,000 Sales return processing costs $35,000 Lost profits from lost sales $720,000 Inspection at State I of Production $100,000 Preventative maintenance $105,000 Improved equipment $115,000 What of the following cost is the total cost of quality the manager should use to report the costs in the internal failure cost category? Question…
Walton Company has measured its quality costs for the past two years. After the company gathers its quality cost data, it summarizes those costs using the four categories shown below: Last Year This Year Prevention costs $ 357,000 $ 650,000 Appraisal costs $ 445,000 $ 545,000 Internal failure costs $ 790,000 $ 500,000 External failure costs $ 1,100,000 $ 680,000 Required:1. Calculate the total cost of quality last year and this year. 2. For last year, calculate the cost in each of the four categories as a percent of the total cost of quality. (Round your answers to 1 decimal place.) 3. For this year, calculate the cost in each of the four categories as a percent of the total cost of quality. (Round your answers to 1 decimal place.) 4-a. Calculate the change in total cost of quality over the two-year period. 4-b. Is performance trending in a favorable or unfavorable direction?multiple choice Favorable Unfavorable