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Using the activity data in exercise prepare a cost of

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Reference no: EM13482952

Mountain States Cable Co. provides cable TV and Internet service to the local community.

The activities and activity costs of Mountain States are identified as follows:

  • Activities Activity Cost
  • Billing error correction $ 28,000
  • Cable signal testing 60,000
  • Reinstalling service (installed incorrectly the ?rst time) 44,000
  • Repairing satellite equipment 24,000
  • Repairing underground cable connections to the customer 12,000
  • Replacing old technology cable with higher quality cable 100,000
  • Replacing old technology signal switches with higher quality switches 76,000
  • Responding to customer home repair requests 20,000
  • Training employees 36,000
  • Total $400,000

Prepare a Pareto chart of these activities.

a. Using the activity data in Exercise prepare a cost of quality report. Assume that sales are $2,000,000. Round percentages to one decimal place.

b. Using the activity data in Exercise prepare a value-added/non-value-added analysis.

Reference no: EM13482952

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