This 210 140 15 80 235 25 240 Appraisal costs 30 155 Final 9

This 210 140 15 80 235 25 240 Appraisal costs: 30 155 Final 92 110 62 172 62 50 112 62 252 314 23 85 108 $ 911 569 s 4,110 4,510 Customer returns Total quality cost As they were reviewing the report, Elsoe asked Tran what he now thought of the quality improvement program. Tran replied. \"TI\'m relileved that the new quality improvement program hasn\'t hurt our bonuses, but the program has increased the workload in the Production Department. It is true that customer returns are way down, but the cell phones that were returned by customers to retail outlets were rarely sent back to us for rework. 1. Expand the company\'s quality cost report by showing the costs in both years as percentages of both total production cost and total quality cost. (Round your percentage answers to 1 decimal place (i.e 0.1234 should be entered as 12.3)) K Prev 6 of 6 Next

Solution

Quality cost report (in thousands) Last year This year Particulars Amount($) Percentage of Amount($) Percentage of Total quality cost Total production cost Total quality cost Total production cost Prevention cost Machine maintenance 210 140 Training suppliers 5 15 Quality circles 25 80 Total 240 26.3% 5.8% 235 41.3% 5.2% Appraisals cost Incoming inspection 30 22 final testing 155 92 Total 185 20.3% 4.5% 114 20.0% 2.5% Internal failure cost Rework 110 62 Scrap 62 50 Total 172 18.9% 4.2% 112 19.7% 2.5% External failure cost warranty repairs 62 23 cutomer return 252 85 Total 314 34.5% 7.6% 108 19.0% 2.4% Total quality cost $911 $569 Total production cost $4,110 $4,510