Cass Company has recorded the following information for the last six months of operations from its cost
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Question:
Cass Company has recorded the following information for the last six months of operations from its cost of quality system:
Quarter 1 | Quarter 2 | |
---|---|---|
Revenue | $ 780,000 | $ 940,000 |
Costs | ||
Warranty expense | $ 15,600 | $ 14,600 |
Machine calibration | 4,200 | 8,160 |
Customer returns (defects) | 23,200 | 19,200 |
Material inspection on receiving dock | 9,520 | 6,320 |
Waste | 19,400 | 15,520 |
Quality testing equipment | 19,100 | 12,500 |
Rework | 2,680 | 4,450 |
Inspection before packaging | 8,000 | 9,700 |
Training on testing equipment | 6,600 | 9,800 |
Required:
Calculate the ratio (percentages) of the prevention, appraisal, internal failure, and external failure costs to sales for Quarter 1 and Quarter 2.
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