Kamanda Corporation is a company in Sidoney that produces mattresses. The company has been working on...

  

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Kamanda Corporation is a company in Sidoney that produces mattresses. The company has been working on improving its quality over the last year and it wants to confirm a reduction in their costs-of-quality (COQ). The quality improvement programs include activities for all four cost categories: prevention costs, appraisal costs, internal failure costs, and external failure costs. Following are the activities related to the production, sales, and after sales of Kamanda's mattresses: 1. 2. 3. Sewing machine repairs Warranty repair costs Design engineering Product testing General marketing Customer complaints processing Mattress rework Value Added Tax audit Assembly inspection Quality training Mattress recall Procurement processing Total Unit Produced Price per mattress 2018 $282,400 $45,000 $212,000 $514,000 $570,000 $29,000 $150,000 $19,800 $238,000 $352,000 $86,470 $110,000 $50,000 $420 2019 $189,000 $44,850 $220,000 $490,000 $630,000 $29,520 $231,000 $21,600 $210,000 $330,000 $120,900 $98,000 $47,000 $455 Identify and categorize the relevant quality cost (6 points) Prepare a COQ Report. The report should include the subtotal for each of the quality of cost category, the percentage of COQ on a categorical basis, and the percentage of COQ to the revenues. (6 points) Provide an analysis of the COQ report. Based on the report, would you conclude that Kamanda's quality improvement program has been successful? (3 points) Kamanda Corporation is a company in Sidoney that produces mattresses. The company has been working on improving its quality over the last year and it wants to confirm a reduction in their costs-of-quality (COQ). The quality improvement programs include activities for all four cost categories: prevention costs, appraisal costs, internal failure costs, and external failure costs. Following are the activities related to the production, sales, and after sales of Kamanda's mattresses: 1. 2. 3. Sewing machine repairs Warranty repair costs Design engineering Product testing General marketing Customer complaints processing Mattress rework Value Added Tax audit Assembly inspection Quality training Mattress recall Procurement processing Total Unit Produced Price per mattress 2018 $282,400 $45,000 $212,000 $514,000 $570,000 $29,000 $150,000 $19,800 $238,000 $352,000 $86,470 $110,000 $50,000 $420 2019 $189,000 $44,850 $220,000 $490,000 $630,000 $29,520 $231,000 $21,600 $210,000 $330,000 $120,900 $98,000 $47,000 $455 Identify and categorize the relevant quality cost (6 points) Prepare a COQ Report. The report should include the subtotal for each of the quality of cost category, the percentage of COQ on a categorical basis, and the percentage of COQ to the revenues. (6 points) Provide an analysis of the COQ report. Based on the report, would you conclude that Kamanda's quality improvement program has been successful? (3 points)

Answer rating: 100% (QA)

aThe relevant quality costs for Kamanda Corporation are prevention costs appraisal costs internal failure costs and external failure costs Prevention costs are costs incurred to prevent defects from o... View the full answer