Calculus Company makes calculators for students. 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). Here are the results:

Required

1. Identify the category for each of these COQ. Required
2. Prepare a COQ Report with sections consisting of the subtotal, the percentage of revenues and the percentage of total COQ on a categorical basis.
3. Based on the results obtained from requirement 2, would you conclude that Calculus’ quality program has been successful? Prepare a short report to present your case.

Transcribed Image Text:

ANNUAL COQ REPORT, Calculus Company 2019 Quality training Machine repairs Warranty repair costs Design engineering Product testing Rework Total COQ Total revenue $ 5,500 $ 4,000 $ 8,300 $4,500 $ 3,100 $ 9,250 $ 34,650 $525,000 2020 $ 6,250 $ 3,750 $ 6,000 $ 5,000 $ 4,000 $ 7,880 $ 32,880 $600,000