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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.

FINANCIAL ACCOUNTING
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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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: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.
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 (%) % % % %
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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