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Week 5 option 2 Springfield Products needs to identify the financial consequences of a new quality initiative. Using the provided data, complete the Quality Report.

Data
Week 5 option 2
Springfield Products needs to identify the financial consequences of a new quality initiative.
Using the provided data, complete the Quality Report.
Costs Allocation Rate Quantity of Costs Allocation Base
Customer Support 73 per hour 9,000 hours
Design Engineering 110 per hour 5,500 hours
Inspection (manufacturing) 60 per hour 39,000 hours
Process Engineering 80 per hour 6,500 hours
Rework 90 per hour 11,000 hours
Transportation 350 per hour 4,500 loads
Warranty Repair 150 per hour 11,300 hours
Revenue 60,000,000
Required: Using the Data tab in the attached spreadsheet, complete the Calculations tab. Fill in all the highlighted areas.
1)
2) `
Calculations
COQ Report Costs Allocation Rate Quantity of Costs Allocation Base Total Costs of Quality Percentage of Revenue
Revenue
Prevention Costs
per hour
per hour
Total Prevention Costs
Appraisal Costs
per hour
Total Appraisal Costs
Internal Failure Costs
per hour
Total Internal Failure Costs
External Failure Costs
per hour
per hour
per hour
Total External Failure Costs
Total Costs of Quality

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