Question: Problem 3-39 Quality Costs: Identification and Analysis {LO 3-?) Advanced Technologies {111'} produces two compression machines that are popular with manufacturers of plastics: no. 155









Problem 3-39 Quality Costs: Identification and Analysis {LO 3-?) Advanced Technologies {111'} produces two compression machines that are popular with manufacturers of plastics: no. 155 and no. 172. Machine no. 165 has an average selling price of $29,900, whereas no. 172 typically sells for approximately $27,400. The company is very concerned about quality and has provided the following information: ND. 165 No. 112 Number of machines produced and sold 166 195 Warranty costs: Average repair cost per unit $ BBB 5F 34!! Percentage of units needing repair 15% 18% Reliability engineering at $146 per hour 1,595 hours 1,998 hours Rework at AT's manufacturing plant: Average rework cost per unit $ 1,8915 1; 1,595 Percentage of units needing rework 315% 28% Manufacturing inspection at $45 per hour 295 hours 49-8 hours Transportation costs to customer sites to fix problems $29,386 $14,881! Quality training for employees $34,881:} $49,881! Requlred: 1. Classify the preceding costs as prevention, appraisal, internal failure, or external failure. 2-a. Using the classications in requirement 1, compute AT's quality costs for machine no. 165 in dollars and as a percentage of sales revenues. 2-b. Using the classications in requirement 1, compute AT's prevention, appraisal, internal failure, and external failure costs as a percentage of total quality costs. 3-a. Using the classifications in requirement 1, compute AT's quality costs for machine no. 172 in dollars and as a percentage of sales revenues. 3-b. Using the classications in requirement 1. compute AT's prevention, appraisal. internal failure, and external failure costs as a percentage of total quality costs. 4. Is the company \"investing\" its quality expenditures differently for the two machines? Reg 1 Req 2A Req 2B Req 3A Req 3B Reg 4 Using the classifications in requirement 1, compute AT's quality costs for machine no. 165 in dollars and as a percentage of sales revenues. (Round "Percentage of Sales" to 2 decimal places.) No. 165 Dollars Percentage of Sales Total $ 0 % Total O Total quality costs O 0.00 % Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 3A Req 3B Reg 4 Using the classifications in requirement 1, compute AT's prevention, appraisal, internal failure, and external failure costs as a percentage of total quality costs. (Round "Percentage of Total Quality Costs" to 2 decimal places. Total may not be equal to 100% due to rounding.) No. 165 Percentage of Dollars Total Quality Costs Prevention % Appraisal % Internal failure % External failure % Total $ 0 Reg 1 Req 2A Req 2B Req 3A Req 3B Reg 4 Using the classifications in requirement 1, compute AT's quality costs for machine no. 172 in dollars and as a percentage of sales revenues. (Round "Percentage of Sales" to 2 decimal places.) No. 172 Dollars Percentage of Sales Total 0 % % Total 0 % Total quality costs 0 0.00 % Req 2B Req 3BComplete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 3A Req 3B Req 4 Using the classifications in requirement 1, compute AT's prevention, appraisal, internal failure, and external failure costs as a percentage of total quality costs. (Round "Percentage of Total Quality Costs" to 2 decimal places. Total may not be equal to 100% due to rounding.) No. 172 Percentage of Dollars Total Quality Costs Prevention % Appraisal % Internal failure % External failure % Total S 0
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