Forensic Specialists compiled the following information for its first quarter cost of quality report: Sales $ 5,650,000 Cost of goods sold $ 3,390,000 Disposing of scrap $ 240,200 Quality training $ 89,000 Inspecting materials on delivery $ 285,000 Performance reviews $ 84,750 Resolving customer complaints $ 36,920 Certifying suppliers $ 150,000 The relevant percentage to be used to express appraisal activities at Forensic Specialists is: Multiple Choice 2.95%. 1.50%. 6.48%. 36.60%.

Forensic Specialists compiled the following information for its first quarter cost of quality report: Sales $ 5,650,000 Cost of goods sold $ 3,390,000 Disposing of scrap $ 240,200 Quality training $ 89,000 Inspecting materials on delivery $ 285,000 Performance reviews $ 84,750 Resolving customer complaints $ 36,920 Certifying suppliers $ 150,000 The relevant percentage to be used to express appraisal activities at Forensic Specialists is: Multiple Choice 2.95%. 1.50%. 6.48%. 36.60%.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter13: Emerging Topics In Managerial Accounting

Section: Chapter Questions

Problem 28BEB: Quality Cost Report Loring Company had total sales of 2,400,000 for fiscal 20X1. The costs of...

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Forensic Specialists compiled the following information for its first quarter cost of quality report: Sales Cost of goods sold Disposing of scrap Quality training $ 238,200 $ 87,000 $ 283,000 $ 78,820 Resolving customer complaints $ 34,920 Certifying suppliers $ 146,000 The relevant percentage to be used to express appraisal activities at Forensic Specialists is: Inspecting materials on delivery Performance reviews Multiple Choice O 35.30%. O 6.17%. 1.40%. $ 5,630,000 $ 3,378,000 O 2.87%
Classification of Cost of quality and determine the total amount on each category appropriately: (I) Expediting=3,27,000 (II) Recalls=3,42,000 (III) Line Inspection=2,12,500 (IV) Litigation costs=2,90,500
Forensic Specialists compiled the following information for its first quarter cost of quality report: Sales $5,630,000 Cost of goods sold $3,378,000 $ 238,200 Disposing of scrap 87,000 283,000 Quality training Inspecting materials on delivery Performance reviews 73,000 34,920 $ 146,000 Resolving customer complaints Certifying suppliers The total cost of external failure activities at Forensic Specialists is: Multiple Choice $420,560 $34,920. $119,100. $182,500.
Thayne Company has 30 clerks that work in its Accounts Payable Department. A study revealed the following activities and the relative time demanded by each activity: Required: Classify the four activities as value-added or non-value-added, and calculate the clerical cost of each activity. For non-value-added activities, indicate why they are non-value-added.
Quality Cost Report Loring Company had total sales of 2,400,000 for fiscal 20X1. The costs of quality-related activities are given below. Required: 1. Prepare a quality cost report, classifying costs by category and expressing each category as a percentage of sales. What message does the cost report provide? 2. Prepare a bar graph and pie chart that illustrate each categorys contribution to total quality costs. Comment on the significance of the distribution.
Corazon Manufacturing Company has a purchasing department staffed by five purchasing agents. Each agent is paid 28,000 per year and is able to process 4,000 purchase orders. Last year, 17,800 purchase orders were processed by the five agents. Required: 1. Calculate the activity rate per purchase order. 2. Calculate, in terms of purchase orders, the: a. total activity availability b. unused capacity 3. Calculate the dollar cost of: a. total activity availability b. unused capacity 4. Express total activity availability in terms of activity capacity used and unused capacity. 5. What if one of the purchasing agents agreed to work half time for 14,000? How many purchase orders could be processed by four and a half purchasing agents? What would unused capacity be in purchase orders?
Metroid Electric manufactures power distribution equipment for commercial customers, such as hospitals and manufacturers. Activity-based costing was used to determine customer profitability. Customer service activities were assigned to individual customers, using the following assumed customer service activities, activity base, and activity rate: Customer Service Activity Activity Base Activity Rate Bid preparation Number of bid requests $420 per request Shipment Number of shipments $90 per shipment Support standard items Number of standard items ordered $30 per std. item Support nonstandard items Number of nonstandard items ordered $180 per nonstd. item Assume that the company had the following gross profit information for three representative customers: Customer 1 Customer 2 Customer 3 Revenues $130,000 $210,000 $180,000 Cost of goods sold (81,900) (113,400) (90,000) Gross profit $48,100 $96,600 $90,000 Gross profit…
Schedule of Activity Costs Quality Control Activities Activity Cost Process audits $50,000 Training of machine operators 28,000 Processing returned products 19,000 Scrap processing (disposal) 25,000 Rework 8,000 Preventative maintenance 30,000 Product design 46,000 Warranty work 12,000 Finished goods inspection 23,000 From the above schedule of activity costs, determine the external failure costs.
Strategic Cost Management 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?
Pacius Corporation is conducting a TDABC study in its Customer Service Department. The company has provided the following data to aid in that study. Pacius corporation Customer service Department Data Inputs Resource Data: Number of employees Average salary per employee Weeks of employment per year Minutes avallable per week (40 hours x 6e minutes) Practical capacity percentage 11 39,7se 50 2,400 Activity Data: Minutes per unit of the activity Processing Orders Processing Resolving Issues Credit Reviews 12 24 36 Cost object Data: Number of orders processed Number of queries resolved Number of credit reviens processed Customer S 35 18 Per TDABC, the total cost assigned to Customer S would be closest to O a $14.04. Ob. $163.80. Oc $346.32, Od $168 48.
Schneider Electric manufactures power distribution equipment for commercial customers, such as hospitals and manufacturers. Activity-based costing was used to determine customer profitability. Customer service activities were assigned to individual customers, using the following assumed customer service activities, activity base, and activity rate: Customer Service Activity Activity Base Activity Rate Bid preparation Number of bid requests $400 per request Shipment Number of shipments $80 per shipment Support standard items Number of standard items ordered $25 per standard item Support nonstandard items Number of nonstandard items ordered $150 per nonstandard item Assume that the company had the following gross profit information for three representative customers: Income Statement Item Customer 1 Customer 2 Customer 3 Revenue $120,000 $200,000 $160,000 Cost of goods sold 76,800 110,000 83,200 Gross profit…
Three Rivers Inc. provides cable TV and Internet service to the local community. The activities and activity costs of Three Rivers are identified as follows: Question Content Areaa. Identify the cost of quality classification for each activity and whether the activity is value-added or non-value-added. Quality Control Activities Activity Cost Quality Cost Classification Value-Added/Non-Value-AddedClassificationBilling error correction $42,800 External failure Non-value-addedCable signal testing 117,300 Appraisal Non-value-addedReinstalling service (installed incorrectly the first time) 92,000 Internal failure Non-value-addedRepairing satellite equipment 20,700 Internal failure Non-value-addedRepairing underground cable connections to the customer 27,800 Internal failure Non-value-addedReplacing old technology cable with higher quality cable 142,000 Appraisal Value-addedReplacing old technology signal switches…

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Sales	$	5,650,000
Cost of goods sold	$	3,390,000
Disposing of scrap	$	240,200
Quality training	$	89,000
Inspecting materials on delivery	$	285,000
Performance reviews	$	84,750
Resolving customer complaints	$	36,920
Certifying suppliers	$	150,000