Shibata Lawns Inc. manufactures riding lawnmowers. Their customers are home improvement and hardware stores who sell...

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Shibata Lawns Inc. manufactures riding lawnmowers. Their customers are home improvement and hardware stores who sell the lawnmowers to home owners. Two of their popular lawnmowers are the 'Bushhog' and the 'Snapper'. The home user living on a large acreage usually buys these mowers because of their low maintenance cost and high safety rating. The industrial engineer that has overseen the design and implementation of the manufacturing of these two products would like a quality report on these two products. You have gathered the following information for the current year: Bushhog Snapper Units manufactured and sold 3100 6,250 Selling price per unit Variable costs per unit Hours spent on quality design Testing and inspection hours per unit Percentage of manufactured units reworked in the plant Rework costs per mower $1,656 $2,208 $995 $768 500 2,800 0.75 1 9% 3% $420 $250 Percentage of units repaired at customer site Warranty repair costs per mower Estimated lost sales from poor quality (units) 8% 2% $460 $410 140 Labour rates: Design - $85 per hour Testing - $42 per hour Required: a. Prepare a cost of quality report for ASSC. The report should list all cost items categorized by type of quality cost, including percentages in relation to revenues for each product and category. (4 marks) Bushhog Quality cost % Snapper Quality cost Quality item Prevention % Appraisal Internal failure External failure Total (continued on next page) Shibata Lawns Inc. manufactures riding lawnmowers. Their customers are home improvement and hardware stores who sell the lawnmowers to home owners. Two of their popular lawnmowers are the 'Bushhog' and the 'Snapper'. The home user living on a large acreage usually buys these mowers because of their low maintenance cost and high safety rating. The industrial engineer that has overseen the design and implementation of the manufacturing of these two products would like a quality report on these two products. You have gathered the following information for the current year: Bushhog Snapper Units manufactured and sold 3100 6,250 Selling price per unit Variable costs per unit Hours spent on quality design Testing and inspection hours per unit Percentage of manufactured units reworked in the plant Rework costs per mower $1,656 $2,208 $995 $768 500 2,800 0.75 1 9% 3% $420 $250 Percentage of units repaired at customer site Warranty repair costs per mower Estimated lost sales from poor quality (units) 8% 2% $460 $410 140 Labour rates: Design - $85 per hour Testing - $42 per hour Required: a. Prepare a cost of quality report for ASSC. The report should list all cost items categorized by type of quality cost, including percentages in relation to revenues for each product and category. (4 marks) Bushhog Quality cost % Snapper Quality cost Quality item Prevention % Appraisal Internal failure External failure Total (continued on next page)

Answer rating: 100% (QA)

a Bushhog Snapper Quality Item Quality Cost Cost Cost relation to revenue Quality Cost Cost Cost rel... View the full answer