can you write the steps please 13. The Sukahara Company recorded the following c
ID: 2561212 • Letter: C
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can you write the steps please
13. The Sukahara Company recorded the following costs of quality during the current period: Warranty costs Rework Reliability testing upon completion of production Repairing defects Raw-material inspection Quality training Customer complaints Restocking Product design Production stoppages from machine breakdowns $12,000 7,000 5,000 2,000 7,000 6,000 2,500 3,000 8,000 9,800 62,300 Total costs of quality How much of the costs were voluntary versus failure costs? Failure $14,500 $36,360 $21,500 $24,000 Voluntary A) $42,500 B) $26,000 C) $12,000 D) S 2,500Explanation / Answer
1. Warranty Costs is the external Failure costs since they are incurred after the product is shipped and delivered to the customer. Therefore it is a failure cost.
2. Rework cost is an internal failure cost and is done before the product is shipped to the customer. Therefore, it is a failure cost.
3. Reliability Testing is an appraisel cost incurred to check whether the product conforms to the quality standards and therefore is a voluntary cost.
4. Repairing Defects is internal failure cost and there will be a failure cost.
5. Raw Inspection Material is a preventive cost taken before the inspection of the goods. Therefore, it will fall under voluntary costs.
6. Quality Training is a prevention cost incurred on the employees so that they conform to the quality of the products manufactured and therefore, it is a voluntary cost.
7. Customer Complaints are taken care after the product is delivered and is therefore falles under the category of External Failure Costs. it is a Failure cost
8. Restocking is an internal failure cost and is therefore failure cost.
9. Product Design is a preventive cost incurred during research and development and before production of goods. It is a voluntary cost.
10. Production stoppages from machine breakdown is an internal failure cost as the same is machine breakdown stoppage. It is a failure cost.
Summing up the above points answer needs to be the given below:
Voluntary Costs = $5000 + $7,000 + $6,000 + $8,000 = $26,000.
Failure Costs = $12,000 + $7,000 + $2000 + $2,500 + $3,000 + $9,800 = $36,300.
Total Cost is $62,300
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