HomeNeat, Co. has two division that produce Napkins and Towels. The manager of HomeNeat, Co. just...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
HomeNeat, Co. has two division that produce Napkins and Towels. The manager of HomeNeat, Co. just received data for preparing quality cost report as per Dec 31, 2021, as follows: Napkins ($) Towels ($) Product liability 7,500 1,000 Quality reporting Scrap 1,000 7,500 500 1,000 12,000 3,000 Allowances 5,000 Inspection of materials Downtime 2,000 1,200 4,000 Quality training Quality audits Product acceptance 2,300 12,000 2,500 2,000 1,500 7,000 Rework 2,500 1,000 Customer complaints Quality engineering Process acceptance 5,750 4,000 3,750 3,500 1,000 1,000 Required: 1. Assume that sales revenue for Napkins Division is $600,000 and Towels is $1,000,000. Prepare quality cost report for both divisions for Dec 31, 2021. Report should consist of relative distribution of cost for each quality cost category. 2. Refer to question 1, which division performed better in managing cost of quality. Give your analysis. 3. The CFO want to reduce the quality cost to no more than 5%, do you think both divisions can achieve the CFO's target? If yes, how? HomeNeat, Co. has two division that produce Napkins and Towels. The manager of HomeNeat, Co. just received data for preparing quality cost report as per Dec 31, 2021, as follows: Napkins ($) Towels ($) Product liability 7,500 1,000 Quality reporting Scrap 1,000 7,500 500 1,000 12,000 3,000 Allowances 5,000 Inspection of materials Downtime 2,000 1,200 4,000 Quality training Quality audits Product acceptance 2,300 12,000 2,500 2,000 1,500 7,000 Rework 2,500 1,000 Customer complaints Quality engineering Process acceptance 5,750 4,000 3,750 3,500 1,000 1,000 Required: 1. Assume that sales revenue for Napkins Division is $600,000 and Towels is $1,000,000. Prepare quality cost report for both divisions for Dec 31, 2021. Report should consist of relative distribution of cost for each quality cost category. 2. Refer to question 1, which division performed better in managing cost of quality. Give your analysis. 3. The CFO want to reduce the quality cost to no more than 5%, do you think both divisions can achieve the CFO's target? If yes, how?
Expert Answer:
Answer rating: 100% (QA)
QUALITY COST PREVENTION COST APPRAISAL COST INTERNAL FAILURE COST EXTERNAL FAILURE COST NAPKINS OF S... View the full answer
Related Book For
Basic Business Statistics Concepts and Applications
ISBN: 978-0132168380
12th edition
Authors: Mark L. Berenson, David M. Levine, Timothy C. Krehbiel
Posted Date:
Students also viewed these accounting questions
-
Refer to Question C:14-7. Which taxpayer (the trust, Irene, or Beth) pays the tax on the gain? Question C:14-7 A trust instrument provides that, for life, Irene is entitled to receive distributions...
-
Rework Problems 1 and 2 assuming that you buy 750 shares of the stock and the ending share price is $68.40.
-
Assume that your college president has received many student complaints about campus parking problems. You are appointed to chair a student committee organized to investigate the problems and...
-
Brandon Stroud was driving a golf car made by Textron, Inc., to transport guests at Christmas party. The golf car did not have lights, but Textron did not warn against using it on public roads at...
-
The accompanying data are consistent with summary statistics from the paper Shape of Glass and Amount of Alcohol Poured: Comparative Study of Effect of Practice and Concentration ( British Medical...
-
Soon after December 31, 2017, the auditor of Morino Manufacturing Corp. asked the company to prepare a depreciation schedule for semi trucks that showed the additions, retirements, depreciation, and...
-
Which blood vessels are responsible for nutrient and waste exchange with tissues?
-
Bohemian Links Inc. produces sausages in three production departmentsMixing, Casing and curing, and Packaging. In the Mixing Department, meats are prepared and ground and then mixed with spices. The...
-
9. (10%) A Mealy sequential circuit has five states; one input x; and one output y. Its state diagram is shown in the following figure. (a) (5%) Design the circuit with D flip-flops by treating the...
-
Given the following information, calculate after-tax cash flow for year 1. Assuming a sales price of $1,100,000, calculate the after-tax cash flow from the sale (dont forget the depreciation...
-
If a member of a listed company who has cast his vote through electronic voting can attend the general meeting of the company and change his vote subsequently and can he appoint a proxy?
-
How does the use of paradoxical or oxymoronic imagery serve as a rhetorical device, creating cognitive dissonance and prompting readers to contemplate the complexities and contradictions inherent in...
-
While constructing a space platform, a 130kg robot is standing on a 23.0 m long, 255 kg steel beam that is floating in space, initially motionless relative to the platform and pointing South. Using...
-
Why do you think GAAP supports use of estimates in accounting, rather than requiring exact dollar amounts, for tracking AR?
-
Provide citations for any generated assets created with the AI tool and Canva.
-
What are the Partner Deployment options in Central Partner Dashboard?
-
Write pseudo code for the following problem: A retail company assigns a $5000 store bonus if monthly sales are $100,000 or more. Additionally, if their sales exceed 125% or more of their monthly goal...
-
State whether each statement is true or false. If false, give a reason. {purple, green, yellow} = {green, pink, yellow}
-
The business problem facing the director of broadcasting operations for a television station was the issue of standby hours (i.e., hours in which unionized graphic artists at the station are paid but...
-
In Problem 14.8 on page 584, you used land area of a property and age of a house to predict appraised value (stored in GlenCove). Use the results from that problem. a. Construct a 95% confidence...
-
Between 1896 when the Dow Jones Index was created and 2009, the index rose in 64% of the years (data extracted from M. Hulbert, "What the Past Can't Tell Investors," The NewYork Times, January 3,...
-
A standard gold bar stored at Fort Knox, Kentucky, is 7.00 inches long, 3.63 inches wide, and 1.75 inches tall. Gold has a density of \(19,300 \mathrm{~kg} / \mathrm{m}^{3}\). What is the mass of...
-
A typical timber wolf has a mass of \(40 \mathrm{~kg}\), a typical jackrabbit a mass of \(2.5 \mathrm{~kg}\). Given the scaling law presented in the passage, we'd expect the specific metabolic rate...
-
Air enclosed in a cylinder has density \(ho=1.4 \mathrm{~kg} / \mathrm{m}^{3}\). a. What will be the density of the air if the length of the cylinder is doubled while the radius is unchanged? b. What...
Study smarter with the SolutionInn App