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Number of units manufactured and sold Selling price per unit Variable manufacturing and selling costs per unit Hours spent by engineers improving design. Testing and inspection hours per unit Percentage of units reworked in the plant after inspection Average variable rework costs per refrigerator 3,200 units 1,250 750 1,500 0.5 hours 7% 520 Percentage of units reworked in the plant after inspection Average variable rework costs per refrigerator. Percentage of units repaired under warranty at customers' homes Average variable repair costs at customers' homes per refrigerator. Estimated lost sales due to quality, reputation Design engineer's labor rate (includes benefits and payroll taxes). Inspection costs per hour. 7% 520 10% 570 650 units $60 per hour $80 per hour Requirements X 1. Prepare a Cost of Quality (COQ) report. In addition to calculating the total costs of each category, calculate the percentage of COQ category of the total COQ. 2. Why would the variable repair cost at the customers' home generally be higher than the "in factory" rework cost? 3. How can use of the COQ report lead to improvements in the production process or in the quality of the product itself? Requirement 1. Prepare a cost of Quanty (CO) report. In addition to calculating the total costs of each category. Calculate the percentage of COQ caory of one tenth of a percent XX a box is not used in the table leave the box empty do not select a label or enter a zero) Grayson Cost of Quality Report Total Costs of Percentage of Total Costs incurred Quality of Quality (Rounded) CORO Costs Prevention Costs: Total prevention costs Appraisal Costs: External Failure Costs: Total external failure costs Total costs of quality

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