Walton Company has measured its quality costs for the past two years. After the company gathers...
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Walton Company has measured its quality costs for the past two years. After the company gathers its quality cost data, it summarizes those costs using the four categories shown below: Prevention costa Apprainal costs Internal failure costs External failure costs Last Year $ 371,300 $ 471,700 $ 726,800 $ 1,155,000 This Year $ 656,500 $ 599,500 $ 470,000 $ 646,000 Required: 1. Calculate the total cost of quality last year and this year. 2. For last year, calculate the cost in each of the four categories as a percent of the total cost of quality. 3. For this year, calculate the cost in each of the four categories as a percent of the total cost of quality. 4-a. Calculate the change in total cost of quality over the two-year period. 4-b. Is performance trending in a favorable or unfavorable direction? Walton Company has measured its quality costs for the past two years. After the company gathers its quality cost data, it summarizes those costs using the four categories shown below: Prevention costa Apprainal costs Internal failure costs External failure costs Last Year $ 371,300 $ 471,700 $ 726,800 $ 1,155,000 This Year $ 656,500 $ 599,500 $ 470,000 $ 646,000 Required: 1. Calculate the total cost of quality last year and this year. 2. For last year, calculate the cost in each of the four categories as a percent of the total cost of quality. 3. For this year, calculate the cost in each of the four categories as a percent of the total cost of quality. 4-a. Calculate the change in total cost of quality over the two-year period. 4-b. Is performance trending in a favorable or unfavorable direction?
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Answer rating: 100% (QA)
1Total cost of quality Last Year 3724800 This Year 2371000 2Percentage brea... View the full answer
Related Book For
Managerial Accounting
ISBN: 9781260247787
17th Edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
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