Harvey Company designs and produces surgical lasers. Its product is brilliantly designed, but the manufacturing process has been plagued by chronic quality control problems. To help address the situation, Harvey formed a cross-functional team of managers that quantified its costs of quality over the last two quarters as follows: Cost of testing equipment Customer returns of defective goods Downtime due to quality problems Inspection Net cost of scrap Product recalls Quality engineering Rework labor Statistical process control Supplies used in testing Systems development Warranty repairs Costs (in thousands) Quarter 2 Quarter 1 $270 $3,200 $600 $1,700 $800 $3,500 $1,080 $1,400 $0 $30 $120 $390 $200 $1,100 $2,770 $1,300 $600 $1,650 $1,600 $270 $40 $680 $2,800 $3,300 The company's sales were $95 million in Quarter 1 and $100 million in Quarter 2.
Harvey Company designs and produces surgical lasers. Its product is brilliantly designed, but the manufacturing process has been plagued by chronic quality control problems. To help address the situation, Harvey formed a cross-functional team of managers that quantified its costs of quality over the last two quarters as follows: Cost of testing equipment Customer returns of defective goods Downtime due to quality problems Inspection Net cost of scrap Product recalls Quality engineering Rework labor Statistical process control Supplies used in testing Systems development Warranty repairs Costs (in thousands) Quarter 2 Quarter 1 $270 $3,200 $600 $1,700 $800 $3,500 $1,080 $1,400 $0 $30 $120 $390 $200 $1,100 $2,770 $1,300 $600 $1,650 $1,600 $270 $40 $680 $2,800 $3,300 The company's sales were $95 million in Quarter 1 and $100 million in Quarter 2.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
Excel Analytics 12-01 (Static) Quality Cost Report [LO12-2]
To complete this activity, you will need to have Excel installed on your computer. This exercise requires you to work in
Excel and answer questions in Connect. You will read a brief scenario and then download an Excel file that you will need
to complete the requirements in Parts 1 through 3 of this exercise.
Some of the requirements include brief video tutorials on using Excel functions. After viewing the tutorials, you will then
use what you learned to work directly in Excel to answer the required questions in Connect.
[The following information applies to the questions displayed below.]
Harvey Company designs and produces surgical lasers. Its product is brilliantly designed, but the manufacturing process
has been plagued by chronic quality control problems. To help address the situation, Harvey formed a cross-functional
team of managers that quantified its costs of quality over the last two quarters as follows:
Cost of testing equipment
Customer returns of defective goods.
Downtime due to quality problems
Inspection
Net cost of scrap
Product recalls
Quality engineering
Rework labor
Statistical process control
Supplies used in testing.
Systems development
Warranty repairs
Costs (in thousands)
Quarter 1
Quarter 2
$270
$3,200
$600
$1,700
$800
$3,500
$1,080
$1,400
$390
$200
$1,100
$2,770
$1,300
$600
$1,650
$1,600
$270
$40
$680
$2,800
$0
$30
$120
$3,300
The company's sales were $95 million in Quarter 1 and $100 million in Quarter 2.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa3aee5f4-3513-4f47-9b3f-33eeb9b6ee1a%2Fcb4a13dd-68ff-4e8d-a916-b443d51d7780%2Ft4t7z9g_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
Excel Analytics 12-01 (Static) Quality Cost Report [LO12-2]
To complete this activity, you will need to have Excel installed on your computer. This exercise requires you to work in
Excel and answer questions in Connect. You will read a brief scenario and then download an Excel file that you will need
to complete the requirements in Parts 1 through 3 of this exercise.
Some of the requirements include brief video tutorials on using Excel functions. After viewing the tutorials, you will then
use what you learned to work directly in Excel to answer the required questions in Connect.
[The following information applies to the questions displayed below.]
Harvey Company designs and produces surgical lasers. Its product is brilliantly designed, but the manufacturing process
has been plagued by chronic quality control problems. To help address the situation, Harvey formed a cross-functional
team of managers that quantified its costs of quality over the last two quarters as follows:
Cost of testing equipment
Customer returns of defective goods.
Downtime due to quality problems
Inspection
Net cost of scrap
Product recalls
Quality engineering
Rework labor
Statistical process control
Supplies used in testing.
Systems development
Warranty repairs
Costs (in thousands)
Quarter 1
Quarter 2
$270
$3,200
$600
$1,700
$800
$3,500
$1,080
$1,400
$390
$200
$1,100
$2,770
$1,300
$600
$1,650
$1,600
$270
$40
$680
$2,800
$0
$30
$120
$3,300
The company's sales were $95 million in Quarter 1 and $100 million in Quarter 2.
Transcribed Image Text:What are the first quarter's total prevention, appraisal, internal failure, and external failure costs each stated as a percent of
the first quarter's total cost of quality? What are the same four percentages for the second quarter?
Note: Round your answers to 1 decimal place.
Prevention
Appraisal
Internal failure
External failure
Quarter 1
(%)
%
%
%
%
Quarter 2
(%)
%
%
%
%
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