Your company makes products XYZ and PQR. The following quality cost-related information is available for each product.For product XYZ:Warranty repair costsReliability engineeringRework at Greenspan's manufacturing plantManufaeturing inspeetionTransportation costs to customer sites to fix problemsQuality training for employees$120,000355,00070,00040,00025,00075,000For product PQR:Prevention costs79.4%Appraisal costsInternal failurc costs3.7%9.6%External failure costs7.3%Total quality costs100.0%1. Calculate the total amounts of prevention cost, appraisal cost, internal failure cost, and external failure cost for product XYZ.2. Based on what you found in (1) above, find the percentage of each category of quality cost to the total quality costs for productXYZ3. Is the company spending its quality costs similarly for XYZ and PQR? Explain your answer.

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Answered: Your company makes products XYZ and…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Value chain and classification of costs, computer company. Dell Computer incurs the following costs:a. Utility costs for the plant assembling the Latitude computer line of productsb. Distribution costs for shipping the Latitude line of products to a retail chainc. Payment to David Newbury Designs for design of the XPS 2-in-1 laptopd. Salary of computer scientist working on the next generation of serverse. Cost of Dell employees’ visit to a major customer to demonstrate Dell’s ability to interconnect withother computersf. Purchase of competitors’ products for testing against potential Dell productsg. Payment to business magazine for running Dell advertisementsh. Cost of cartridges purchased from outside supplier to be used with Dell printers
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