Meagher Solutions Inc. manufactures memory chips for personal computers. An activity analysis was conducted, and the following

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Meagher Solutions Inc. manufactures memory chips for personal computers. An activity analysis was conducted, and the following activity costs were identified with the manufacture and sale of memory chips:

ActivitiesActivity Cost

Activities                                                   Activity Cost

Correct shipment errors………………………….$ 150,000

Disposing of scrap……………………………………..95,000

Emergency equipment maintenance…………….125,000

Employee training………………………………………..50,000

Final inspection………………………………………….....80,000

Inspecting incoming materials………………………..60,000

Preventive equipment maintenance……….……...40,000

Processing customer returns…………………………..90,000

Scrap reporting………………………………………….......45,000

Supplier development…………………………………...15,000

Warranty claims…………………………………......……..250,000

Total………………………………………………..............$1,000,000

Prepare a Pareto chart of these activities.

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Related Book For  book-img-for-question

Financial And Managerial Accounting

ISBN: 9781337119207

14th Edition

Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac

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