Adirondack Company produces chairs. The company has been immersed in the total quality process during 2016...

Transcribed Image Text:

Adirondack Company produces chairs. The company has been immersed in the total quality process during 2016 and 2017. It has incurred the following quality costs during those years: Annual COQ Report, Adirondack Company 2016 2017 Supplier evaluation $ 5,000 $ 5,500 Scrap $ 7,500 $ 5,900 Warranty repair costs $ 9,980 $ 7,960 Design engineering $ 4,475 $ 6,775 Inspection $ 3,500 $ 4,600 Rework $ 8,980 $ 5,800 $ 39,435 $ 36,535 $500,000 $575,000 Total COQ Total Revenue 1. Classify the above costs among the categories of quality costs discussed in the course. Explain why you classify this way. 2. Prepare the cost of quality report (a COQ report) as we discussed in class (that is, as % of total income). 3. Based on the results in 2), discuss whether the company's total quality program has been successful. Adirondack Company produces chairs. The company has been immersed in the total quality process during 2016 and 2017. It has incurred the following quality costs during those years: Annual COQ Report, Adirondack Company 2016 2017 Supplier evaluation $ 5,000 $ 5,500 Scrap $ 7,500 $ 5,900 Warranty repair costs $ 9,980 $ 7,960 Design engineering $ 4,475 $ 6,775 Inspection $ 3,500 $ 4,600 Rework $ 8,980 $ 5,800 $ 39,435 $ 36,535 $500,000 $575,000 Total COQ Total Revenue 1. Classify the above costs among the categories of quality costs discussed in the course. Explain why you classify this way. 2. Prepare the cost of quality report (a COQ report) as we discussed in class (that is, as % of total income). 3. Based on the results in 2), discuss whether the company's total quality program has been successful.