Karen Setten, regional manager of Heavenly Pies, is evaluating the performance of four pie kitchens in her

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Karen Setten, regional manager of Heavenly Pies, is evaluating the performance of four pie kitchens in her region. In accordance with the company’s costs-of-quality standards of performance, the four locations provided these data for the past six months:


Karen Setten, regional manager of Heavenly Pies, is evaluating t


Required
1. For each location, compute the percentages of sales represented by prevention costs, appraisal costs, total costs of conformance, internal failure costs, external failure costs, total costs of nonconformance, and total costs of quality. Carry your answers to two decimal places.
2. For each location, calculate the ratio of costs of conformance to costs of quality and the ratio of costs of nonconformance to costs of quality.
3. Manager Insight: Interpret the cost of quality data for each location. Rank the locations in terms ofquality.

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Managerial Accounting

ISBN: 978-0618777181

8th Edition

Authors: Susan V. Crosson, Belverd E. Needles

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