California Industries manufactures two types of refrigerators, Lakers and Clippers. Information on each refrigerator is as follows: Lakers Clippers Units manufactured and sold 10,000 units 5,000 units Selling price P2,000 P1,500 Variable cost per unit P1,200 P800 Hours spent on design 6,000 1,000 Testing and inspection hours per unit 1 0.5 Percentage units reworked in plant 5% 10% Repairs costs per refrigerator P600 P450 Estimated lost sales from poor quality 300 units The labor rates per hour for various activities are as follows: Design Testing and inspection P75 per hour P40 per hour

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Complete solutions, please, badly need it now within an hour.

1. What is the prevention cost and its cost of quality percentage of revenues of Lakers?

2. What is the internal failure cost and its cost of quality percentage of Lakers revenues of Lakers? 

3. What is the external failure cost and its cost of quality percentage of Lakers revenues of Lakers?

4. What is the prevention cost and its cost of quality percentage of revenues of Clippers?

5. What is the internal failure cost and its cost of quality percentage of Clippers revenues of Lakers?

4. 

California Industries manufactures two types of refrigerators,
Lakers and Clippers. Information on each refrigerator is as
follows:
Lakers
Clippers
Units manufactured and sold
10,000 units
5,000 units
Selling price
P2,000
P1,500
Variable cost per unit
P1,200
P800
Hours spent on design
6,000
1,000
Testing and inspection hours per unit
1
0.5
Percentage units reworked in plant
5%
10%
Repairs costs per refrigerator
P600
P450
Estimated lost sales from poor quality
300 units
The labor rates per hour for various activities are as follows:
Design
Testing and inspection
P75 per hour
P40 per hour
Transcribed Image Text:California Industries manufactures two types of refrigerators, Lakers and Clippers. Information on each refrigerator is as follows: Lakers Clippers Units manufactured and sold 10,000 units 5,000 units Selling price P2,000 P1,500 Variable cost per unit P1,200 P800 Hours spent on design 6,000 1,000 Testing and inspection hours per unit 1 0.5 Percentage units reworked in plant 5% 10% Repairs costs per refrigerator P600 P450 Estimated lost sales from poor quality 300 units The labor rates per hour for various activities are as follows: Design Testing and inspection P75 per hour P40 per hour
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