I sent an attatchment so the outline of the 2 questions look better. Consider the following quality cost report: Q1 Q2 Q3 Q4 Prevention costs $510 $754 $650 $570 Appraisal costs $440 $455 $3
I sent an attatchment so the outline of the 2 questions look better.
Consider the following quality cost report:
Q1 Q2 Q3 Q4
Prevention costs $510 $754 $650 $570
Appraisal costs $440 $455 $383 $266
Internal failure costs $355 $318 $236 $179
External failure costs $735 $632 $336 $256
Total quality costs $2,040 $2,159 $1,605 $1,271
Total revenues $8,240 $9,080 $9,300 $9,020
Do you believe this firm’s quality initiatives have been successful? Be sure to justify your opinion with specific information.
Consider the following information:
Q1 Q2
Beginning inventory (units) 200 400
Budgeted units to be produced 5,000 5,000
Actual units produced A H
Units sold B 5,100
Variable manufacturing costs per unit produced $150 $150
Variable marketing costs per unit sold $35 $35
Fixed manufacturing costs $750,000 $750,000
Fixed marketing costs $160,000 $160,000
Selling price per unit $400 $400
Variable costing operating income C $186,500
Absorption costing operating income D I
Variable costing beginning inventory $30,000 $60,000
Absorption costing beginning inventory $60,000 $120,000
Variable costing ending inventory E $15,000
Absorption costing ending inventory F J
PVV ($75,000) $30,000
Allocated fixed manufacturing costs G $720,000
There are no price, efficiency, or spending variances, and any production-volume variance is directly written off to cost of goods in the quarter in which it occurs.
Complete the missing figures from the above Table.
Q1 Q2
A H
B I
C J
D
E
F
G
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Question 1
Consider the following quality cost report:
Q1
Q2
Q3
Q4
Prevention costs
$510
$754
$650
$570
Appraisal costs
$440
$455
$383
$266
Internal failure costs
$355
$318
$236
$179
External failure costs
$735
$632
$336
$256
Total quality costs
$2,040
$2,159
$1,605
$1,271
Total revenues
$8,240
$9,080
$9,300
$9,020
Do you believe this firm’s quality initiatives have been successful?
Be sure to justify
your opinion with specific information.
Question 2
Consider the following information:
Q1
Q2
Beginning inventory (units)
200
400
Budgeted units to be produced
5,000
5,000
Actual units produced
A
H
Units sold
B
5,100
Variable manufacturing costs per unit produced
$150
$150
Variable marketing costs per unit sold
$35
$35
Fixed manufacturing costs
$750,000
$750,000
Fixed marketing costs
$160,000
$160,000
Selling price per unit
$400
$400
Variable costing operating income
C
$186,500
Absorption costing operating income
D
I
Variable costing beginning inventory
$30,000
$60,000
Absorption costing beginning inventory
$60,000
$120,000
Variable costing ending inventory
E
$15,000
Absorption costing ending inventory
F
J
PVV
($75,000)
$30,000
Allocated fixed manufacturing costs
G
$720,000
There are no price, efficiency, or spending variances, and any production-volume
variance is directly written off to cost of goods in the quarter in which it occurs.
Complete the missing figures from the above Table.
Unlock Solution Unlocking…
Q1
Q2
A
H
B
I
C
J
D
E
F
G
