Question: 1 Activities Activity Cost 2 Billing error correction $36,000.00 3 Cable signal testing 91,800.00 4 Reinstalling service (installed incorrectly the first time) 28,000.00 5 Repairing

1

Activities

Activity Cost

2

Billing error correction

$36,000.00

3

Cable signal testing

91,800.00

4

Reinstalling service (installed incorrectly the first time)

28,000.00

5

Repairing satellite equipment

37,800.00

6

Repairing underground cable connections to the customer

17,000.00

7

Replacing old technology cable with higher quality cable

169,000.00

8

Replacing old technology signal switches with higher quality switches

126,000.00

9

Responding to customer home repair requests

27,000.00

10

Training employees

7,400.00

11

Total

$540,000.00

d. Interpret the information in (b) and (c).

What percentage of total costs of quality are considered to be value-added? %

 1 Activities Activity Cost 2 Billing error correction $36,000.00 3 Cable

signal testing 91,800.00 4 Reinstalling service (installed incorrectly the first time) 28,000.00

b. Prepare a cost of quality report. Assume that sales are $2,200, 000. Round percentages to one decimal place. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Score: 24/79 Three Rivers Inc. Cost of Quality Report Percent of Total Percent of Total Quality Cost Classification Quality Cost 1 Quality Cost Sales 2 Prevention 3 Appraisal 4 Internal failure 5 External failure Total c. Prepare a value-addedon-value-added analysis. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Score: 12/36 Three Rivers Inc. Value-Added/Non-Value-Added Activity Analysis Category Amount Percent 1 2 Value-added 3 Non-value-added Total 4

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