Schedule of Activity Costs Quality Control Activities Process audits Training of machine operators Processing returned products Scrap processing (disposal) Rework Activity Cost $51,900 29,900 19,900 25,700 8,600 31,600 41,000 6,600 22,500 From the provided schedule of activity costs, determine the internal failure costs. Oa. $101,800 Ob. $27,440 Oc. $34,300 Od. $60,800 Preventative maintenance Product design Warranty work Finished goods inspection

Schedule of Activity Costs Quality Control Activities Process audits Training of machine operators Processing returned products Scrap processing (disposal) Rework Activity Cost $51,900 29,900 19,900 25,700 8,600 31,600 41,000 6,600 22,500 From the provided schedule of activity costs, determine the internal failure costs. Oa. $101,800 Ob. $27,440 Oc. $34,300 Od. $60,800 Preventative maintenance Product design Warranty work Finished goods inspection

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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Schedule of Activity Costs Quality Control Activities Process audits $48,300 Training of machine operators 28,200 Processing returned products 20,700 Scrap processing (disposal) 24,200 Rework 8,900 Preventative maintenance 29,300 Product design 43,300 Warranty work 10,000 Finished goods inspection 22,800 From the above schedule of activity costs, determine the value-added Oa. $235,700 Ob. $171,900 Oc. $149,100 Od. $181,900 Activity Cost
Activity-Based Environmental Cost Assignments Pinter Company had the following environmental activities and product information: 1. Environmental activity costs Activity Costs Design products (to reduce pollution) $ 129,600 Test for contamination 230,400 Treat toxic waste 720,000 Operate pollution control equipment 576,000 2. Driver data Solvent X Solvent Y Design hours 2,900 1,900 Testing hours 5,100 7,700 Pounds of waste 600 15,400 Machine hours 2,900 61,100 3. Other production data Solvent X Solvent Y Nonenvironmental production costs $2,176,000 $4,128,000 Units produced 320,000 320,000 4. Activity rates that will be used to assign environmental costs to products. Design Produts 27 per design hour Testing 18 per test hour Treating waste 45 per pound of waste Operating equipment 9 per machine hour 1. Determine the unit…
5.04 Cost of Normal Spoilage additional rework required direct materials costing $1,000 and direct labor costing $700. Assume that the spoilage was due to carelessness by a Frieling worker and it is considered to be normal spoilage. Required: Calculate the cost of the Tramel job. $ Feedback Check My Work Make any needed journal entry to the overhead control account. If an amount box does not require an entry, leave it blank. V Check My Work See Cornerstone 5.4. What if the additional rework required $1,400 of direct labor? What would be the effect on the cost of the Tramel job?
Appendix: Standard-Costing Method and ... Work in process, beginning 19,300 Started during current period 145,400 To account for 164,700 Spoiled units 12,000 Good units completed and transferred out 128,000 Work in process, ending 24,700 Accounted for 164,700 NG▾ Inspection occ stage. Normal spoilage is 5% of the good unit.
Activity-Based Environmental Cost Assignments Pinter Company had the following environmental activities and product information: 1. Environmental activity costs Activity Costs Design products (to reduce pollution) $ 129,600 Test for contamination 230,400 Treat toxic waste 720,000 Operate pollution control equipment 576,000 2. Driver data Solvent X Solvent Y Design hours 2,900 1,900 Testing hours 5,100 7,700 Pounds of waste 600 15,400 Machine hours 2,900 61,100 3. Other production data Solvent X Solvent Y Nonenvironmental production costs $2,176,000 $4,128,000 Units produced 320,000 320,000 What if the design costs increased to $219,600 and the cost of toxic waste decreased to $360,000? Assume that Solvent Y uses 3,800 out of 7,600 design hours. Also assume that waste is cut by 50 percent and that Solvent Y is responsible for…
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Questions 5-10. Classify the mentioned costs using the following letters: to. Preventionb. Evaluationc. Internal failured. External failure 5. Inspect the purchased raw material when it arrives at the factory. 6. Honor a customer's warranty for a defective product 7. Repair defective products before selling them (rework) 8. Cost of damaged units (spoilage) 9. Training of manufacturing employees 10. Maintenance of the manufacturing equipment every three months
The manager at Rainbow International prepares a Cost of Quality report to report the folowing expenses: Inspection of raw material costs Warranty costs warranty claims Cost to dispose of rojocted products Train hourly manufacturing personnel Rework of batch #2894 Production losses due to machine malfunctions Cost of defective products found at inspection audit Inspecting products when halway through the production process $28,000 $8,000 $220,000 $12,000 $60,000 S160,000 $23.000 s82.000 Which of the following total cost is the total cost of quality in the internal tailure cost calegory? O A. $277,000 OB. $36,000 OC. S60.000 O D. $593,000 OE $220,000
puestion 5.4 Stark and Company's has the following cost data: Systems development Final product testing and inspection Quality data gathering, analysis, and reporting Net cost of scrap Customer returns arising from quality problems Amortization of testing equipment $29,000 $12,000 $9,000 $58,000 $56,000 553,000 $16,000 $38,000 $33,000 Rework labour and overhead Testing and inspection of incoming materials Product recalls Submission Instructions: 1. Determine the total prevention costs? 2. Determine total appraisal costs? 3. Determine the total internal failure costs?