ACT570_CT_Mod05_Option_1.xlsx - Week 5 option 1 Free Manufacturing Company(FMC is based in San Diego California FMC wants to determine the cost of

ACT570_CT_Mod05_Option_1.xlsx - Week 5 option 1 Free...

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Week 5 option 1 Free Manufacturing Company (FMC) is based in San Diego California. FMC wants to determine the Using the provided data, complete the Cost of Quality (COQ) Report by answering the following que Costs Allocation Rate Quantity of Costs Allocation Customer Support 60 per hour 10,000 hours Design Engineering 100 per hour 5,000 hours 50 per hour 40,000 hours Process Engineering 80 per hour 6,000 hours Rework 100 per hour 10,000 hours Transportation 300 per hour 4,000 loads Warranty Repair 100 per hour 10,000 hours Revenue 50,000,000 Required: 1). Categorize the costs into: Prevention, Appraisal, Internal Failure, and External Failure Costs 2). Compute the total costs for each category. Round answers to four decimal points. 3). Compute the percentage of revenue for each category. Round answers to four decimal points. 4). Compute the Total Costs of Quality. Round answers to four decimal points.
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Unformatted text preview: 1) 2) ` Inspection (manufacturing) cost of quality for the products manufactured. estion n Base Week 5 option 1 COQ Report Costs Allocation Rate Quantity of Costs Allocation Base Revenue Prevention Costs Design Engineering 100 5,000 Process Engineering 80 6,000 Total Prevention Costs Appraisal Costs Inspection (manufacturing) 50 40,000 Total Appraisal Costs Internal Failure Costs Rework Total Internal Failure Costs 100 10,000 External Failure Costs Warranty Repair 100 10,000 Customer Support 60 10,000 Transportation 300 4,000 Total External Failure Costs Total Costs of Quality Total Costs of Quality 50,000,000 100.00% 500,000 1.00% 480,000 0.96% 980,000 1.96% 2,000,000 4.00% 2,000,000 4.00% 1,000,000 2.00% 1,000,000 2.00% 1,000,000 2.00% 600,000 1.20% 1,200,000 2.40% 2,800,000 5.60% 6,780,000 13.56% ] Percentage of Revenue...
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