Free Manufacturing Company (FMC) is based in San Diego California. FMC wants to

Question

Free Manufacturing Company (FMC) is based in San Diego California. FMC wants to determine the cost of quality for the products manufactured. Using the provided data, complete the Cost of Quality (COQ) Report by answering the following question Costs Allocation Rate Quantity of Costs Allocation Base Customer Support 60 per hour 10,000 hours Design Engineering 100 per hour 5,000 hours Inspection (manufacturing) 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. Free Manufacturing Company (FMC) is based in San Diego California. FMC wants to determine the cost of quality for the products manufactured. Using the provided data, complete the Cost of Quality (COQ) Report by answering the following question Costs Allocation Rate Quantity of Costs Allocation Base Customer Support 60 per hour 10,000 hours Design Engineering 100 per hour 5,000 hours Inspection (manufacturing) 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.

Explanation / Answer

Preventive Appraisal Internal Failure External Failure Customer Support 600000 Design Engineering 500000 Inspection 2000000 Process Engineering 480000 Rework 1000000 Transportation 1200000 Warranty Repair 1000000 1580000 2000000 2200000 1000000 Revenue 50000000 50000000 50000000 50000000 % 3.16% 4.00% 4.40% 2.00% Total Cost of Quality Customer Support 600000 Design Engineering 500000 Inspection 2000000 Process Engineering 480000 Rework 1000000 Transportation 1200000 Warranty Repair 1000000 6780000

Related Questions

Navigate

• Browse (All)
• Browse F
• Subjects

---

---

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