3414%20quiz8a%20key%20F08 - b Preventions Costs c Appraisal...

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Quiz 8 – FORM A BIT 3414 Clark – BIT 3414, F08 Copyright © 2008 Name _____________________________ Provide the most appropriate answer for each question. The SuperCool Company has a production line that manufactures coolant units for refrigerators. Once per hour, a coolant unit is randomly sampled from the line and tested with a machine designed to measure the unit’s performance. Last week a test found a defective unit. Several more units were immediately tested and found to all have a poor weld causing the problem. The entire production line was shut down in order to fix the equipment responsible for the bad welds. 1. The costs associated with purchasing the machine designed to measure the unit’s performance are most appropriately classified as a. External Failure Costs
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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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