PART 1-3

Information Information Variable manutacturing and selling costs per unit. Hours spent by engineers improving design . . 1,100 800 Testing and inspection hours per unit. 0.5 hours Percentage of units reworked in the plant after inspection. 10% Average variable rework costs per freezer. 430 Percentage of units repaired under warranty at customers' homes 6% Average variable repair costs at customers' homes per freezer. 520 Estimated lost sales due to quality reputation. 550 units Design engineer's labor rate (includes benefits and payroll taxes) $100 per hour Inspection costs per hour $20 per hour Grayson Industries manufactures freezers. Here is some information about its " L17 " line of freezers over the past year: View the information. Read the reguirements. Requirement 1. Prepare a Costs of Quality (COO) report. In addition to calculating the total costs of each category, calculate the percentage of COQ category of the total COQ. (Round the percentage to the one tonth of a percent, X.X\%. If an input field is not used in the table, leave the input field empty; do not select a label or enter a zero.) Requirements 1. Prepare a Costs of Quality (COQ) report. In addition to calculating the total costs of each category, calculate the percentage of COQ category of the total COQ. 2. Why would the variable repair cost at the customers' home generally be higher than the "in factory" rework cost? 3. How can use of the COQ report lead to improvements in the production process or in the quality of the product itself