Exercise 12-8 (Algo) Cost of Quality [LO12-2] Walton Company measured its quality costs for the past two years and summarized those costs using the four categories shown below: Prevention costs Appraisal costs Internal failure costs External failure costs Required: 1. Calculate the total cost of quality last year and this year. 2. For last year, calculate the cost in each of the four categories as a percent of the total cost of quality. Last Year $ 321,300 $ 405,000 $ 758,400 $ 1,177,000 3. For this year, calculate the cost in each of the four categories as a percent of the total cost of quality. 4-a. Calculate the change in total cost of quality over the two-year period. 4-b. Is performance trending in a favorable or unfavorable direction? Req 1 Complete this question by entering your answers in the tabs below. This Year $ 591,500 $ 528,700 $ 450,000 $ 734,400 Req 2 Total cost of quality Req 3 Req 4A Calculate the total cost of quality last year and this year. Last Year This Year < Req 1 Req 4B Req 2 >

Exercise 12-8 (Algo) Cost of Quality [LO12-2] Walton Company measured its quality costs for the past two years and summarized those costs using the four categories shown below: Prevention costs Appraisal costs Internal failure costs External failure costs Required: 1. Calculate the total cost of quality last year and this year. 2. For last year, calculate the cost in each of the four categories as a percent of the total cost of quality. Last Year $ 321,300 $ 405,000 $ 758,400 $ 1,177,000 3. For this year, calculate the cost in each of the four categories as a percent of the total cost of quality. 4-a. Calculate the change in total cost of quality over the two-year period. 4-b. Is performance trending in a favorable or unfavorable direction? Req 1 Complete this question by entering your answers in the tabs below. This Year $ 591,500 $ 528,700 $ 450,000 $ 734,400 Req 2 Total cost of quality Req 3 Req 4A Calculate the total cost of quality last year and this year. Last Year This Year < Req 1 Req 4B Req 2 >

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Required information The Foundational 15 (Algo) (LO9-1, LO9-2, LO9-3] [The following information applies to the questions displayed below] Adger Corporation is a service company that measures its output based on the number of customers served. The company provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results for May as shown below: Revenue Employee salaries and wages Travel expenses Other expenses Fixed Element per Month $ 53,000 $32,000 Variable Element per Customer Served $5,400 $ 1,400 $750 Actual Total for May $ 203,000 $108,500 $ 27,700 $ 30,000 When preparing its planning budget the company estimated that it would serve 35 customers per month; however, during May the company actually served 40 customers. Foundational 9-9 (Algo) 9. What is Adger's other expenses spending variance for May? (Indicate the effect of each variance by selecting "F" for favorable. "U" for unfavorable, and "None" for no effect (i.e., zero…
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Prevention costs Appraisal costs Internal failure costs: External failure costs Last Year $ 389, 100 $ 467, 300 $ 837,400 $1,100,000 This Year $ 669,500 $ 545,000 $ 465,000 $ 612,000 Required: 1. Calculate the total cost of quality last year and this year. 2. For last year, calculate the cost in each of the four categories as a percent of the total cost of quality. 3. For this year, calculate the cost in each of the four categories as a percent of the total cost of quality. 4-a. Calculate the change in total cost of quality over the two-year period. 4-b. Is performance trending in a favorable or unfavorable direction? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4A Required 48 Calculate the change in total cost of quality over the two-year period. Prevention and appraisal activities Internal and external failure costs The total cost of quality Increased Decreased 502,300 Decreased < Prev 4 of 5 ⠀⠀ Next