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Unformatted text preview: b. Preventions Costs c. Appraisal Costs d. Internal Failure Costs 2. The Japanese Union of Scientists and Engineers a. worked with Walter Shewart before World War II b. initiated and still administers the top quality award in Japan c. rejected the teachings of all Americans after World War II The Tonato Company manufactures carts with a weekly product input of 840 carts and a direct manufacturing cost of $67.50 per cart. The average percentage of good-quality carts manufactured is 80%. Of the poor-quality carts produced, 75% can be successfully reworked at an average cost of $18.00 each. 3. What is the cost per cart (product cost rounded to the nearest penny)? a. $71.17 b. $67.61 c. $70.20 d. $87.75 e. $73.89 ( )( ) ( )( ) Y R K I K = C P r d + Y = (I)(%G) + (I)(1-%G)(%R)...
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- Fall '08