In response to intense foreign competition, Florex Company has taken steps to improve the quality of its products. A summary of its quality costs (in thousands) over the past two years is given below: Inspection Quality engineering Depreciation of test equipment Rework labor Costs (in thousands) This Year Last Year $ 630 $1,218 $ 630 $ 420 $ 420 $ 588 $ 1,260 $0 $ 1,470 $ 42 $ 840 $ 3,570 $ 210 $ 840 $ 1,680 $ 420 $ 1,092 $ 42 $ 1,050 $ 1,512 $1,050 $1,260 $ 924 $ 420 Statistical process control Cost of field servicing Supplies used in testing Systems development Warranty repairs Net cost of scrap Product testing Product recalls Disposal of production defects Sales have been flat over the past few years, at $84,000,000 per year. $ 2,940 $ 630 Required: 1. Prepare a quality cost report for this year and last year. Note: Enter amount values in thousands. Round your percentage answers to 2 decimal places (i.e 0.1234 should be entered as 12.34).
In response to intense foreign competition, Florex Company has taken steps to improve the quality of its products. A summary of its quality costs (in thousands) over the past two years is given below: Inspection Quality engineering Depreciation of test equipment Rework labor Costs (in thousands) This Year Last Year $ 630 $1,218 $ 630 $ 420 $ 420 $ 588 $ 1,260 $0 $ 1,470 $ 42 $ 840 $ 3,570 $ 210 $ 840 $ 1,680 $ 420 $ 1,092 $ 42 $ 1,050 $ 1,512 $1,050 $1,260 $ 924 $ 420 Statistical process control Cost of field servicing Supplies used in testing Systems development Warranty repairs Net cost of scrap Product testing Product recalls Disposal of production defects Sales have been flat over the past few years, at $84,000,000 per year. $ 2,940 $ 630 Required: 1. Prepare a quality cost report for this year and last year. Note: Enter amount values in thousands. Round your percentage answers to 2 decimal places (i.e 0.1234 should be entered as 12.34).
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 4CE: Nabors Company had actual quality costs for the year ended June 30, 20x5, as given below. At the...
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