Evans Company had total sales of $3,800,000 for fiscal 20x5. The costs of quality-related activities are given
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Evans Company had total sales of $3,800,000 for fiscal 20x5. The costs of quality-related activities are given below.
Returns/allowances $190,000 Design changes 228,000 Prototype inspection 11,400 Downtime 152,000 Quality circles 7,600 Packaging inspection 15,200 Field testing 7,600 Complaint adjustment 209,000 Required:
1. Prepare a quality cost report, classifying costs by category and expressing each category as a percentage of sales. Round percentages to one decimal place, when rounding is required. For example, 5.78% would be entered as "5.8".
Evans Company Quality Cost Report For the Year Ended 20x5 Quality Costs Total Percentage of Sales Prevention costs: $ $ % Appraisal costs: $ Internal failure costs: $ External failure costs: $ Total quality costs $ %
Related Book For
Cornerstones of Cost Management
ISBN: 978-1111824402
2nd edition
Authors: Don R. Hansen, Maryanne M. Mowen
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