Schedule of Activity CostsQuality Control ActivitiesProduct testingAssessing vendor qualityRecallsReworkScrap disposalProduct designTraining machine operatorsWarranty workProcess auditsFrom the provided schedule of activity costs, determine the (a) prevention and (b) appraisal costs.a. Prevention costs $Activity Cost$55,00026,00018,00029,0008,00030,00046,00012,00022,000b. Appraisal costs $

A. PREVENTION COSTS : THOSE COSTS WHICH ARE ASSOCIATED WITH ACTIVITIES SPECIFICALLY DESIGNED TO…

Schedule of Activity Costs Quality Control Activities Product testing Assessing vendor quality Recalls Rework Scrap disposal Product design Training machine operators Warranty work Process audits Activity Cost $55,000 26,000 18,000 29,000 8,000 30,000 46,000 12,000 22,000 From the provided schedule of activity costs, determine the (a) prevention and (b) appraisal costs. a. Prevention costs $ b. Appraisal costs $

Schedule of Activity Costs Quality Control Activities Product testing Assessing vendor quality Recalls Rework Scrap disposal Product design Training machine operators Warranty work Process audits Activity Cost $55,000 26,000 18,000 29,000 8,000 30,000 46,000 12,000 22,000 From the provided schedule of activity costs, determine the (a) prevention and (b) appraisal costs. a. Prevention costs $ b. Appraisal costs $

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 10CE: Selected activities and other information are provided for Patterson Company for its most recent...

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HELP WITH CORRECT ANSWER AND WORKING Schedule of Activity CostsQuality Control ActivitiesActivity CostProcess audits$48,200Training of machine operators27,000Processing returned products16,700Scrap processing (disposal)25,200Rework8,900Preventative maintenance28,100Product design43,800Warranty work6,900Finished goods inspection23,000 From the above schedule of activity costs, determine the total activity cost. a. $227,800 b. $99,000 c. $275,638 d. $149,700
Schedule of Activity Costs Quality Control Activities Product testing Assessing vendor quality Recalls Rework Scrap disposal Product design Training machine operators Warranty work Process audits From the provided schedule of activity costs, determine the (a) value-added and (b) non-value-added costs. 2 a. Value-added costs $ Activity Cost $55,000 26,000 18,000 29,000 8,000 30,000 46,000 12,000 22,000 b. Non-value-added costs $
Schedule of Activity Costs Quality Control Activities Process audits Training of machine operators Processing returned products Scrap processing (disposal) Rework Preventative maintenance Product design Warranty work Finished goods inspection Activity Cost $49,100 28,600 15,900 24,700 5,700 27,600 42,200 8,700 22,600 From the provided schedule of activity costs, determine the value-added costs. Oa. $170,100 Ob. $178,800 Oc. $225,100 Od. $147,500
Classify each of the following as either one-time or recurring costs: a. training personnel b. initial programming and testing c. systems design d. hardware costs e. software maintenance costsf. site preparation g. rent for facilities h. data conversion from old system to new system i. insurance costs j. installation of original equipment k. hardware upgrades
Schedule of Activity Costs Quality Control Activities Process audits Training of machine operators Processing returned products Scrap processing (disposal) Rework Preventative maintenance Product design Warranty work Finished goods inspection 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
Quality Control Activities Product testing Assessing vendor quality Recalls Rework Scrap disposal Product design Training machine operators Warranty work Process audits Schedule of Activity Costs LA From the provided schedule of activity costs, determine the external failure costs. S Activity Cost $55,000 26,000 18,000 29,000 8,000 30,000 46,000 12,000 22,000
Schedule of Activity Costs Quality Control Activities Process audits $49,300 25,300 15,100 26,500 6,700 30,400 42,400 6,800 22,100 From the provided schedule of activity costs, determine the non-value-added costs. Oa. $112,800 Ob. $48,300 Oc. $224,600 Od. $55,100 Training of machine operators Processing returned products Scrap processing (disposal) Rework Preventative maintenance Activity Cost Product design Warranty work Finished goods inspection
12. Cost of Quality and Value-Added/Non-Value-Added Reports for a Service Company Three Rivers Inc. provides cable TV and Internet service to the local community. The activities and activity costs of Three Rivers are identified as follows: a. Identify the cost of quality classification for each activity and whether the activity is value-added or non-value-added. Quality Control Activities Activity Cost Quality Cost Classification Value-Added/Non-Value-AddedClassification Billing error correction $28,400 Cable signal testing 78,400 Reinstalling service (installed incorrectly the first time) 61,100 Repairing satellite equipment 34,300 Repairing underground cable connections to the customer 18,500 Replacing old technology cable with higher quality cable 98,800 Replacing old technology signal switches with higher quality switches 112,900 Responding to customer home repair requests 34,100 Training employees…
Schedule of Activity Costs Quality Control Activities Product testing Assessing vendor quality Recalls Rework Scrap disposal Product design Training machine operators Warranty work Process audits Activity Cost $55,000 26,000 18,000 29,000 8,000 30,000 46,000 12,000 22,000 From the provided schedule of activity costs, determine the internal failure costs.
Schedule of Activity Costs Quality Control Activities Process audits Training of machine operators Processing returned products $50,000 28,000 19,000 25,000 8,000 30,000 46,000 12,000 23,000 From the provided schedule of activity costs, determine the prevention costs. Oa. $30,000 Ob. $104,000 Oc. $74,000 Od. $76,000 Scrap processing (disposal) Rework Activity Cost Preventive maintenance Product design Warranty work Finished goods inspection
The actions listed next are associated with either an activity-based operational control system or a traditional operational control system: a. Budgeted costs for the maintenance department are compared with the actual costs of the maintenance department. b. The maintenance department manager receives a bonus for beating budget. c. The costs of resources are traced to activities and then to products. d. The purchasing department is set up as a responsibility center. e. Activities are identified and listed. f. Activities are categorized as adding or not adding value to the organization. g. A standard for a products material usage cost is set and compared against the products actual materials usage cost. h. The cost of performing an activity is tracked over time. i. The distance between moves is identified as the cause of materials handling cost. j. A purchasing agent is rewarded for buying parts below the standard price set by the company. k. The cost of the materials handling activity is reduced dramatically by redesigning the plant layout. l. An investigation is undertaken to find out why the actual labor cost for the production of 1,000 units is greater than the labor standard allowed. m. The percentage of defective units is calculated and tracked over time. n. Engineering has been given the charge to find a way to reduce setup time by 75 percent. o. The manager of the receiving department lays off two receiving clerks so that the fourth-quarter budget can be met. Required: Classify the preceding actions as belonging to either an activity-based operational control system or a traditional control system. Explain why you classified each action as you did.
Which of the following is a prevention cost? a. Inspection of materials. b. Continuing supplier verification. c. Prototype inspection. d. Recalls.