Advanced Technologies (AT) produces two compression machines that are popular with manufacturers of plastics no....
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Advanced Technologies (AT) produces two compression machines that are popular with manufacturers of plastics no. 165 and no 172 Machine no. 165 has an average selling price of $29,100, whereas no. 172 typically sells for approximately $25700 The company is very concerned about quality and has provided the following information No. 165 120 No. 172 110 $ $ Number of machines produced and sold Warranty costs: Average repair cost per unit Percentage of units needing repair Reliability engineering at $iee per hour Rework at A's manufacturing plant: Average rework cost per unit Percentage of units needing rework Manufacturing inspection at $40 per hour Transportation costs to customer sites to fix problems Quality training for employees 810 75% 1,519 hours 16% 1,958 hours $ 1,855 25% 210 hours $28,600 $33,200 $1,550 3 410 hours $13,200 $49, 100 Required: 1. Classify the preceding costs as prevention, appraisal, internal failure, or external failure, 2-a. Using the classifications in requirement 1. compute AT's quality costs for machine no. 165 in dollars and as a percentage of sales revenues 2-b. Using the classifications in requirement 1, compute AT's prevention, appraisal, Internal failure, and external failure costs as a
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