Exercise 12-8 (Algo) Cost of Quality [LO12-2] Walton Company measured its quality costs for the past two years and summarized those costs using the four categories shown below: Prevention costs Appraisal costs Internal failure costs External failure costs 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. Last Year $ 321,300 $ 405,000 $ 758,400 $ 1,177,000 3. For this year, calculate the cost in each of the four categories as a percent of the total cost of quality. 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? Req 1 Complete this question by entering your answers in the tabs below. This Year $ 591,500 $ 528,700 $ 450,000 $ 734,400 Req 2 Total cost of quality Req 3 Req 4A Calculate the total cost of quality last year and this year. Last Year This Year < Req 1 Req 4B Req 2 >
Exercise 12-8 (Algo) Cost of Quality [LO12-2] Walton Company measured its quality costs for the past two years and summarized those costs using the four categories shown below: Prevention costs Appraisal costs Internal failure costs External failure costs 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. Last Year $ 321,300 $ 405,000 $ 758,400 $ 1,177,000 3. For this year, calculate the cost in each of the four categories as a percent of the total cost of quality. 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? Req 1 Complete this question by entering your answers in the tabs below. This Year $ 591,500 $ 528,700 $ 450,000 $ 734,400 Req 2 Total cost of quality Req 3 Req 4A Calculate the total cost of quality last year and this year. Last Year This Year < Req 1 Req 4B Req 2 >
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter14: Quality And Environmental Cost Management
Section: Chapter Questions
Problem 13E: Gagnon Company reported the following sales and quality costs for the past four years. Assume that...
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