Ontario Industries manufactures two types of refrigerators, Olivia and Solta. Information on each refrigerator is as follows:
The labour rates per hour for various activities are as follows:
Design ............ $90 per hour
Testing and inspection...... $48 per hour
1. Calculate the costs of quality for Olivia and Solta classified into prevention, appraisal, internal failure, and external failure categories.
2. For each type of refrigerator, calculate the ratio of each COQ item as a percentage of sales.
Compare and comment on the costs of quality for Olivia and Solta.
3. Give two examples of nonfinancial quality measures that Ontario Industries could monitor as part of a total quality-control effort.

  • CreatedJuly 31, 2015
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