Costs of quality analysis. Adirondack Company makes chairs for outside living spaces. The com- pany has been working on improving quality over the last year and wants to evaluate how well it has done on costs-of-quality (Co0) measures. Here are the results: Annual COQ Report, Adirondack Company 2016 2017 Supplier evaluation Scrap Warranty repair costs Design engineering Inspection $ 5,000 $ 7,500 $ 9,980 $ 4,475 $ 3,500 $ 8,980 $ 39,435 $500,000 $ 5,500 $ 5,900 $ 7,960 $ 6,775 $ 4,600 $ 5,800 $ 36,535 $575,000 Rework Total CoQ Total Revenue
Costs of quality analysis. Adirondack Company makes chairs for outside living spaces. The com- pany has been working on improving quality over the last year and wants to evaluate how well it has done on costs-of-quality (Co0) measures. Here are the results: Annual COQ Report, Adirondack Company 2016 2017 Supplier evaluation Scrap Warranty repair costs Design engineering Inspection $ 5,000 $ 7,500 $ 9,980 $ 4,475 $ 3,500 $ 8,980 $ 39,435 $500,000 $ 5,500 $ 5,900 $ 7,960 $ 6,775 $ 4,600 $ 5,800 $ 36,535 $575,000 Rework Total CoQ Total Revenue
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Prepare a COQ report by calculating the costs of quality for each category and the ratio of each COQ category to revenues and total quality costs.
![Costs of quality analysis. Adirondack Company makes chairs for outside living spaces. The com-
pany has been working on improving quality over the last year and wants to evaluate how well it has done
on costs-of-quality (Co0) measures. Here are the results:
Annual COQ Report, Adirondack Company
2016
2017
Supplier evaluation
Scrap
Warranty repair costs
Design engineering
Inspection
$ 5,000
$ 7,500
$ 9,980
$ 4,475
$ 3,500
$ 8,980
$ 39,435
$500,000
$ 5,500
$ 5,900
$ 7,960
$ 6,775
$ 4,600
$ 5,800
$ 36,535
$575,000
Rework
Total CoQ
Total Revenue](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5531c2da-69a1-4cd0-aa19-d161b0bbe735%2Fb0478208-7567-49c7-8c9c-4cffd8c0119d%2Fcmeb9h9.jpeg&w=3840&q=75)
Transcribed Image Text:Costs of quality analysis. Adirondack Company makes chairs for outside living spaces. The com-
pany has been working on improving quality over the last year and wants to evaluate how well it has done
on costs-of-quality (Co0) measures. Here are the results:
Annual COQ Report, Adirondack Company
2016
2017
Supplier evaluation
Scrap
Warranty repair costs
Design engineering
Inspection
$ 5,000
$ 7,500
$ 9,980
$ 4,475
$ 3,500
$ 8,980
$ 39,435
$500,000
$ 5,500
$ 5,900
$ 7,960
$ 6,775
$ 4,600
$ 5,800
$ 36,535
$575,000
Rework
Total CoQ
Total Revenue
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