Which of the following is an internal failure cost? Multiple Choice Warranty replacement costs Engineering and design costs Costs to rework defective units Depreciation on testing equipment
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With respect to costs of quality, this type of cost arises when a defect is discovered in the factory and is fixed before it reaches the consumer. a. systematic failure cost. b. internal failure cost. c. unsystematic failure cost. d. external failure cost.
Azat N.
Some units of output failed to pass final inspection at the end of the manufacturing process. The production and inspection supervisors determined that the estimated incremental revenue from reworking the units exceeded the cost of rework. The rework of the defective units was authorized, and the following costs were incurred in reworking the units. Materials requisitioned from stores: Direct materials $ 5,000 Miscellaneous supplies 300 Direct labor 14,000 The manufacturing overhead budget includes an allowance for rework. The predetermined manufacturing overhead rate is 150% as large as direct labor. The account(s) to be charged and the appropriate charges for the rework costs would be work-in-process inventory control for $19,000. work-in-process inventory control for $5,000 and factory overhead control for $35,300. overhead control for $19,300. overhead control for $40,300.
Madhur L.
Which of the following cost categories are considered to be variable costs rather than fixed costs (two correct answers): A) direct labor B) equipment C) insurance D) maintenance E) work material F) research and development
Sri K.
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