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 $31,400, whereas no. 172 typically sells for approximately $28,200. The company is very concerned about quality and has provided the following information: No. 165 No. 172 235 Number of machines produced and sold Warranty costs: Average repair cost per unit Percentage of units needing repair Reliability engineering at $185 per hour Rework at ATs 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 230 420 10% 2, 035 hours 970 60% 1, 670 hours $ 1,970 $1,670 30% 20% 370 hours 535 hours $30, 200 $35, 700 $16, 400 $51, 400 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 calculate prevention, appraisal, internal failure, and external failure costs as a percentage of total quality costs. 3-a. Using the classifications in requirement (1), compute AT's quality costs for machine no. 172 in dollars and as a percentage of sales revenues. 3-b. Using the classifications in requirement (1), compute AT's calculate prevention, appraisal, internal failure, and external failure costs as a percentage of total quality costs 4. Is the company "investing" its quality expenditures differently for the two machines. Req 1 Req 2A Req 2B Req Req 3 Req 4 Using the classifications in requirement (1), compute AT's quality costs for machine no. 165 in dollars and as a percentage of sales revenues. (Round "Percentage of Sales" to 2 decimal places.) No. 165 Percentage of Sales Dollars Sales revenue Prevention cost: Reliability engineering Quality training Total $ 0 Appraisal cost: Internal failure cost: % External failure cost: Warranty costs Transportation costs to customer sites Total $ 0 0.00 % $ 0 Total quality costs Rea 2B Rea 1 > Req 1 Req 2A Req 2B Req 3A Req 3B Req 4 Using the classifications in requirement (1), compute AT's calculate prevention, appraisal, internal failure, and external failure costs as a percentage of total quality costs. (Round "Percentage of Total Quality Costs" to 2 decimal places. Total may not be equal to 100% due to rounding.) No. 165 Percentage of Total Quality Costs Dollars Prevention Appraisal Internal failure % External failure $ 0 Total Req 2A Req 3A Req 1 Req 2A Req 2B Req 3 Req 3B Req 4 Using the classifications in requirement (1), compute AT's quality costs for machine no. 172 in dollars and as a percentage of sales revenues. (Round "Percentage of Sales" to 2 decimal places.) No. 172 Percentage of Sales Dollars Sales revenue Prevention cost: Reliability engineering Quality training $ Total Appraisal cost: Internal failure cost: External failure cost Warranty costs Transportation costs to customer sites $ Total 0 0.00 % $ Total quality costs Req 2B Req 3B Req 1 Req 2A Req 2B Req 3 Req 3 Req 4 Using the classifications in requirement (1), compute AT's calculate prevention, appraisal, internal failure, and external failure costs as a percentage of total quality costs. (Round "Percentage of Total Quality Costs" to 2 decimal places. Total may not be equal to 100% due to rounding.) No. 172 Percentage of Total Quality Costs Dollars Prevention Appraisal Internal failure External failure $ 0 Total Req 3A Req 4 Req 1 Req 2A Req 2B Req 3A Req 3B Req 4 Is the company "investing" its quality expenditures differently for the two machines. Yes No Req 3B Req 4 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 $31,400, whereas no. 172 typically sells for approximately $28,200. The company is very concerned about quality and has provided the following information: No. 165 No. 172 235 Number of machines produced and sold Warranty costs: Average repair cost per unit Percentage of units needing repair Reliability engineering at $185 per hour Rework at ATs 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 230 420 10% 2, 035 hours 970 60% 1, 670 hours $ 1,970 $1,670 30% 20% 370 hours 535 hours $30, 200 $35, 700 $16, 400 $51, 400 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 calculate prevention, appraisal, internal failure, and external failure costs as a percentage of total quality costs. 3-a. Using the classifications in requirement (1), compute AT's quality costs for machine no. 172 in dollars and as a percentage of sales revenues. 3-b. Using the classifications in requirement (1), compute AT's calculate prevention, appraisal, internal failure, and external failure costs as a percentage of total quality costs 4. Is the company "investing" its quality expenditures differently for the two machines. Req 1 Req 2A Req 2B Req Req 3 Req 4 Using the classifications in requirement (1), compute AT's quality costs for machine no. 165 in dollars and as a percentage of sales revenues. (Round "Percentage of Sales" to 2 decimal places.) No. 165 Percentage of Sales Dollars Sales revenue Prevention cost: Reliability engineering Quality training Total $ 0 Appraisal cost: Internal failure cost: % External failure cost: Warranty costs Transportation costs to customer sites Total $ 0 0.00 % $ 0 Total quality costs Rea 2B Rea 1 > Req 1 Req 2A Req 2B Req 3A Req 3B Req 4 Using the classifications in requirement (1), compute AT's calculate prevention, appraisal, internal failure, and external failure costs as a percentage of total quality costs. (Round "Percentage of Total Quality Costs" to 2 decimal places. Total may not be equal to 100% due to rounding.) No. 165 Percentage of Total Quality Costs Dollars Prevention Appraisal Internal failure % External failure $ 0 Total Req 2A Req 3A Req 1 Req 2A Req 2B Req 3 Req 3B Req 4 Using the classifications in requirement (1), compute AT's quality costs for machine no. 172 in dollars and as a percentage of sales revenues. (Round "Percentage of Sales" to 2 decimal places.) No. 172 Percentage of Sales Dollars Sales revenue Prevention cost: Reliability engineering Quality training $ Total Appraisal cost: Internal failure cost: External failure cost Warranty costs Transportation costs to customer sites $ Total 0 0.00 % $ Total quality costs Req 2B Req 3B Req 1 Req 2A Req 2B Req 3 Req 3 Req 4 Using the classifications in requirement (1), compute AT's calculate prevention, appraisal, internal failure, and external failure costs as a percentage of total quality costs. (Round "Percentage of Total Quality Costs" to 2 decimal places. Total may not be equal to 100% due to rounding.) No. 172 Percentage of Total Quality Costs Dollars Prevention Appraisal Internal failure External failure $ 0 Total Req 3A Req 4 Req 1 Req 2A Req 2B Req 3A Req 3B Req 4 Is the company "investing" its quality expenditures differently for the two machines. Yes No Req 3B Req 4