5e sol14-17 - PERFORMANCE REPORT - JANUARY Actual Costs...

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Cost Management Hansen and Mowen Prob 14-17 Name: SOLUTION Enter the appropriate title of each cost in the shaded cells in column C, and enter the appropriate amounts in the shaded cells in columns E and G. BUDGETED COST OF QUALITY January February Prevention costs: Quality planning $2,000 $2,000 New product review 500 500 Quality training 1,000 1,000 Total prevention $3,500 $3,500 Appraisal costs: Material inspection $2,500 $2,500 Field inspection 12,000 14,000 Product acceptance 13,000 15,000 Total appraisal $27,500 $31,500 Internal failure costs: Scrap $10,000 $12,000 Retesting 6,000 7,200 Rework 9,000 10,800 Downtime 5,000 6,000 Total internal failure $30,000 $36,000 External failure costs: Warranty $15,000 $18,000 Allowances 7,500 9,000 Complaint adjustment 2,500 2,500 Total external failure $25,000 $29,500 Total quality costs $86,000 $100,500
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Unformatted text preview: PERFORMANCE REPORT - JANUARY Actual Costs Bud. Costs Variance Prevention costs: Quality planning $2,500 $2,000 $500 U New product review 700 500 200 U Quality training 1,000 1,000 - Total prevention $4,200 $3,500 $700 U Appraisal costs: Material inspection $2,500 $2,500 $- Field inspection 14,000 12,000 2,000 U Product acceptance 14,000 13,000 1,000 U Total appraisal $30,500 $27,500 $3,000 U Internal failure costs: Scrap $12,500 $10,000 $2,500 U Retesting 7,000 6,000 1,000 U Rework 11,000 9,000 2,000 U Downtime 5,500 5,000 500 U Total internal failure $36,000 $30,000 $6,000 U External failure costs: Warranty $17,500 $15,000 $2,500 U Allowances 8,500 7,500 1,000 U Complaint adjustment 2,500 2,500 - Total external failure $28,500 $25,000 $3,500 U Total quality costs $99,200 $86,000 $13,200 U...
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This note was uploaded on 11/05/2009 for the course BUS ACC202 taught by Professor Achillies during the Spring '09 term at NC Wesleyan.

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