Question: Graph the cost with the given information: The basic cost of an exception is $1,000 but, may go as high as $5,000. this cost does
Graph the cost with the given information:
The basic cost of an exception is $1,000 but, may go as high as $5,000. this cost does not include rework costs. The total quantity identified as requiring rework through process was over 200,000. By reviewing one production lines data we can estimate the overall cost to rework this product. The material costs for packaging is $30.17 per unit which, translates into a total cost of $603,400 for 20,000 units. The base cost for an exception is $1,000 times the 10 exceptions which equals $10,000 and the 259 exception equals $259,000.
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