calculate the quality cost per unit for each product and break this unit cost into q 649551

ACTIVITY BASED QUALITY COSTING

Maxwell Company produces two different carburetors and is concerned about their quality. The company has identified the following quality activities and costs associated with the two products:

	Carburetor A	Carburetor B
Units produced	170,000	340,000
Warranty work (units)	1,700	850
Scrapped units (number)	3,400	850
Inspection (hours)	3,400	1,700
Quality training (hours)	85	85
Activities:
Performing warranty work	$204,000
Scrapping units	153,000
Inspecting	76,500
Quality training	42,500

Required:

1. Calculate the quality cost per unit for each product, and break this unit cost into quality cost categories. Which of the two seems to have the lowest quality?

2. How might a manager use the unit quality cost information?