117.From the above schedule, calculate the internal failure costs.
118.From the above schedule, calculate the external failure costs.
119.From the above schedule, compute the percentage of non-value-added activities.
120.Connally Company’s payroll department required that every time card be checked twice to ensure pay accuracy.The company has 1,000 employees and has determined that the checks cost the company $8,000 per year. Theyhave decided to change this policy and only check those names which appear on the exceptions report and arandom check on the entire payroll. Currently only 15% of the payroll is evaluated each payroll. Determine theinspection activity cost per employee on the 1,000 employees both before and after the improvement.
121.A quality control activity analysis indicated the following four activity costs of a hotel.
Verifying credit card information
$40,000
Customer service training
20,000
Discounting room rates due to poor customer service
16,000
Correcting charges to customer invoices
8,000
Total
$84,000
Sales are $750,000 for the year. Prepare a cost of quality report.
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