Silicon Solutions Inc. manufactures RAM memory chips for personal computers. An

Question

Silicon Solutions Inc. manufactures RAM memory chips for personal computers. An activity analysis was conducted, and the following activity costs were identified with the manufacture and sale of memory chips:

Prepare a cost of quality report. Assume that the sales for the period were $3,000,000. If required, round percents to one decimal place.

Silicon Solutions Inc. Cost of Quality Report Quality Cost Classification Quality Cost Percent of Total Quality Cost Percent of Total Sales Prevention $ % % Appraisal Internal failure External failure Total $ % %

Explanation / Answer

Prevention=$12000 = 2% of quality cost =0.4% of total sales Appraisal=30000+72000+24000+12000=150000, 23% 5% Internal Failure=84000+54000=138000 ,23% 4.6% External Failure = 72000+60000+24000+156000=312000,52% 10.4%

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.