classify the cost elements shown below for the impressive printing company into the proper quality cost…

classify the cost elements shown below for the impressive printing company into the proper quality cost categories.\ncost element amount quality cost category\ncustomer complaint remakes $21,700 select\nprinting plate revisions $27,300 select\nquality improvement projects $10,600 appraisal\ngauging $104,000 external failure\nother waste $36,000 internal failure\ncorrection of typographical errors $184,000 select\nproofreading $410,000 select\nquality planning $58,000 select\npress downtime $220,300 select\nbindery waste $47,600 select\nchecking and inspection $30,400 select\nfind the total quality cost by category and percentage of total quality cost by category. do not round intermediate calculations. round the monetary values to the nearest dollar and percentage values to two decimal places.\nquality cost category total amount percentage of total quality cost\nprevention $\nappraisal $\ninternal failure $\nexternal failure $\n

classify the cost elements shown below for the impressive printing company into the proper quality cost categories.\ncost element amount quality cost category\ncustomer complaint remakes $21,700 select\nprinting plate revisions $27,300 select\nquality improvement projects $10,600 appraisal\ngauging $104,000 external failure\nother waste $36,000 internal failure\ncorrection of typographical errors $184,000 select\nproofreading $410,000 select\nquality planning $58,000 select\npress downtime $220,300 select\nbindery waste $47,600 select\nchecking and inspection $30,400 select\nfind the total quality cost by category and percentage of total quality cost by category. do not round intermediate calculations. round the monetary values to the nearest dollar and percentage values to two decimal places.\nquality cost category total amount percentage of total quality cost\nprevention $\nappraisal $\ninternal failure $\nexternal failure $\n

Answer

Explanation:

Step1: Categorize cost elements

  • Prevention costs are incurred to avoid quality problems. Quality - improvement projects ($10,600) and quality planning ($58,000) are prevention costs. Total prevention cost = $10,600 + $58,000=$68,600.
  • Appraisal costs are for checking and ensuring quality. Gauging ($104,000), proofreading ($410,000), and checking and inspection ($30,400) are appraisal costs. Total appraisal cost = $104,000 + $410,000+ $30,400 = $544,400.
  • Internal - failure costs occur when defects are found before the product reaches the customer. Printing plate revisions ($27,300), other waste ($36,000), correction of typographical errors ($184,000), press downtime ($220,300), and bindery waste ($47,600) are internal - failure costs. Total internal - failure cost=$27,300 + $36,000+ $184,000+ $220,300+ $47,600 = $515,200.
  • External - failure costs occur when defects are found after the product reaches the customer. Customer complaint remakes ($21,700) is an external - failure cost.

Step2: Calculate total quality cost

Total quality cost = Prevention cost+Appraisal cost + Internal - failure cost+External - failure cost = $68,600 + $544,400+ $515,200+ $21,700=$1,149,900

Step3: Calculate percentage of total quality cost by category

Prevention percentage = $\frac{68,600}{1,149,900}\times100%\approx6.14%$ Appraisal percentage = $\frac{544,400}{1,149,900}\times100%\approx47.34%$ Internal - failure percentage = $\frac{515,200}{1,149,900}\times100%\approx44.80%$ External - failure percentage = $\frac{21,700}{1,149,900}\times100%\approx1.90%$

Answer:

Quality Cost Category Total Amount Percentage of Total Quality Cost
Prevention $68,600 6.14%
Appraisal $544,400 47.34%
Internal failure $515,200 44.80%
External failure $21,700 1.90%