Lara Company

Interim Standard Performance Report: Quality Costs

For the Year Ended December 31, 20X5
Budgeted Costs Actual Costs
Prevention costs:
Quality planning ₱ 450,000.00 ₱ 450,000.00
Quality training ₱ 180,000.00 ₱ 160,000.00
Quality Improvement (Special project) ₱ 430,000.00 ₱ 390,000.00
Quality reporting ₱ 260,000.00 ₱ 260,000.00
Total prevention costs ₱ 1,320,000.00 ₱ 1,260,000.00
Appraisal costs:
Proofreading ₱ 860,000.00 ₱ 800,000.00
Other inspection ₱ 480,000.00 ₱ 460,000.00
Total Appraisal costs ₱ 1,340,000.00 ₱ 1,260,000.00
Internal failure costs:
Correction of typos ₱ 375,000.00 ₱ 350,000.00
Plate revisions ₱ 125,000.00 ₱ 100,000.00
Press downtime ₱ 221,000.00 ₱ 200,000.00
Waste ₱ 125,000.00 ₱ 70,000.00
Rework ₱ 195,000.00 ₱ 120,000.00
Total internal failure costs ₱ 1,041,000.00 ₱ 840,000.00
External failure costs:
Returns/allowances ₱ 450,000.00 ₱ 400,000.00
Lost sales ₱ 235,000.00 ₱ 200,000.00
Total external failure costs ₱ 685,000.00 ₱ 600,000.00
Total Quality Costs ₱ 4,386,000.00 ₱ 3,960,000.00
Percentage of Sales 12.18% 11.00%

20X1 20.00%
20X2 18.00%
20X3 16.50%
20X4 14.00%
 20X5 11.00%

Lara Company
Single-Period Quality Performance Report
For the Year Ended December 31, 20X5
20X4 - Actual Costs 20X5 - Actual Costs
Prevention costs:
Quality planning ₱ 440,000.00 ₱ 450,000.00
Quality training ₱ 250,000.00 ₱ 160,000.00
Quality Improvement (Special project) ₱ 150,000.00 ₱ 390,000.00
Quality reporting ₱ 240,000.00 ₱ 260,000.00
Total prevention costs ₱ 1,080,000.00 ₱ 1,260,000.00
Appraisal costs:
Proofreading ₱ 860,000.00 ₱ 800,000.00
Other inspection ₱ 580,000.00 ₱ 460,000.00
Total Appraisal costs ₱ 1,440,000.00 ₱ 1,260,000.00
Internal failure costs:
Correction of typos ₱ 200,000.00 ₱ 350,000.00
Plate revisions ₱ 380,000.00 ₱ 100,000.00
Press downtime ₱ 260,000.00 ₱ 200,000.00
Waste ₱ 120,000.00 ₱ 70,000.00
Rework ₱ 310,000.00 ₱ 120,000.00
Total internal failure costs ₱ 1,270,000.00 ₱ 840,000.00
External failure costs:
Returns/allowances ₱ 620,000.00 ₱ 400,000.00
Lost sales ₱ 330,000.00 ₱ 200,000.00
Total external failure costs ₱ 950,000.00 ₱ 600,000.00
Total ₱ 4,740,000.00 ₱ 3,960,000.00
Percentage of Sales 14.00% 11.00%

Lara Company
Interim Standard Performance Report: Quality Costs
For the Year Ended December 31, 20X5
Actual Costs Budgeted Costs
Prevention costs:
Quality planning ₱ 450,000.00 ₱ 450,000.00
Quality training ₱ 160,000.00 ₱ 160,000.00
 Quality Improvement (Special project) ₱ 390,000.00 ₱ 390,000.00
Quality reporting ₱ 260,000.00 ₱ 260,000.00
Total prevention costs ₱ 1,260,000.00 ₱ 1,260,000.00
Appraisal costs:
Proofreading ₱ 800,000.00 ₱ 400,000.00
Other inspection ₱ 460,000.00 ₱ 59,800.00
Total Appraisal costs ₱ 1,260,000.00 ₱ 459,800.00
Internal failure costs:
Correction of typos ₱ 350,000.00 ₱ 350,000.00
Plate revisions ₱ 100,000.00 ₱ 100,000.00
Press downtime ₱ 200,000.00 ₱ 200,000.00
Waste ₱ 70,000.00 ₱ 70,000.00
Rework ₱ 120,000.00 ₱ 120,000.00
Total internal failure costs ₱ 840,000.00 ₱ 840,000.00
External failure costs:
Returns/allowances ₱ 400,000.00 ₱ 400,000.00
Lost sales ₱ 200,000.00 ₱ 200,000.00
Total external failure costs ₱ 600,000.00 ₱ 600,000.00
Total Quality Costs ₱ 3,960,000.00 ₱ 3,159,800.00
Percentage of Sales 11.00% 7.02%

Lara Company
Interim Standard Performance Report: Quality Costs
For the Year Ended December 31, 20X5
Budgeted Costs Actual Costs
Prevention costs:
Quality planning ₱ 450,000.00 ₱ 450,000.00
Quality training ₱ 180,000.00 ₱ 160,000.00
Quality Improvement (Special project) ₱ 430,000.00 ₱ 390,000.00
Quality reporting ₱ 260,000.00 ₱ 260,000.00
Total prevention costs ₱ 1,320,000.00 ₱ 1,260,000.00
Appraisal costs:
Proofreading ₱ 860,000.00 ₱ 800,000.00
Other inspection ₱ 480,000.00 ₱ 460,000.00
Total Appraisal costs ₱ 1,340,000.00 ₱ 1,260,000.00
Internal failure costs:
Correction of typos ₱ 375,000.00 ₱ 350,000.00
Plate revisions ₱ 125,000.00 ₱ 100,000.00
Press downtime ₱ 221,000.00 ₱ 200,000.00
Waste ₱ 125,000.00 ₱ 70,000.00
Total internal failure costs ₱ 846,000.00 ₱ 720,000.00
External failure costs:
Returns/allowances ₱ 450,000.00 ₱ 400,000.00
 Lost sales ₱ 235,000.00 ₱ 200,000.00
Rework ₱ 195,000.00 ₱ 120,000.00
Total external failure costs ₱ 880,000.00 ₱ 720,000.00
Total Quality Costs ₱ 4,386,000.00 ₱ 3,960,000.00
Percentage of Sales 12.18% 11.00%

Lara Company
Single-Period Quality Performance Report
For the Year Ended December 31, 20X5
20X4 - Actual Costs 20X5 - Actual Costs
Prevention costs:
Quality planning ₱ 440,000.00 ₱ 450,000.00
Quality training ₱ 250,000.00 ₱ 160,000.00
Quality Improvement (Special project) ₱ 150,000.00 ₱ 390,000.00
Quality reporting ₱ 240,000.00 ₱ 260,000.00
Total prevention costs ₱ 1,080,000.00 ₱ 1,260,000.00
Appraisal costs:
Proofreading ₱ 860,000.00 ₱ 800,000.00
Other inspection ₱ 580,000.00 ₱ 460,000.00
Total Appraisal costs ₱ 1,440,000.00 ₱ 1,260,000.00
Internal failure costs:
Correction of typos ₱ 200,000.00 ₱ 350,000.00
Plate revisions ₱ 380,000.00 ₱ 100,000.00
Press downtime ₱ 260,000.00 ₱ 200,000.00
Waste ₱ 120,000.00 ₱ 70,000.00
Total internal failure costs ₱ 960,000.00 ₱ 720,000.00
External failure costs:
Returns/allowances ₱ 620,000.00 ₱ 400,000.00
Lost sales ₱ 330,000.00 ₱ 200,000.00
Rework ₱ 310,000.00 ₱ 120,000.00
Total external failure costs ₱ 1,260,000.00 ₱ 720,000.00
Total ₱ 4,740,000.00 ₱ 3,960,000.00
Percentage of Sales 14.00% 11.00%

Lara Company
Long-Range Quality Cost Performance Report
For the Year Ended December 31, 20X5
Actual Costs Long-Range Target Costs
Prevention costs:
Quality planning ₱ 450,000.00 ₱ -
Quality training ₱ 160,000.00 ₱ 337,500.00
 Quality Improvement (Special project) ₱ 390,000.00 ₱ -
Quality reporting ₱ 260,000.00 ₱ 78,750.00
Total prevention costs ₱ 1,260,000.00 ₱ 416,250.00
Appraisal costs:
Proofreading ₱ 1,000,000.00 ₱ 562,500.00
Other inspection ₱ 575,000.00 ₱ 146,250.00
Total Appraisal costs ₱ 1,575,000.00 ₱ 708,750.00
Internal failure costs:
Correction of typos ₱ 437,500.00 ₱ -
Plate revisions ₱ 125,000.00 ₱ -
Press downtime ₱ 250,000.00 ₱ -
Waste ₱ 87,500.00 ₱ -
Total internal failure costs ₱ 900,000.00 ₱ -
External failure costs:
Returns/allowances ₱ 500,000.00 ₱ -
Lost sales ₱ 250,000.00 ₱ -
Rework ₱ 150,000.00 ₱ -
Total external failure costs ₱ 900,000.00 ₱ -
Total Quality Costs ₱ 4,635,000.00 ₱ 1,125,000.00
sts

Variance

₱ -
₱ 20,000.00
₱ 40,000.00
₱ -
₱ 60,000.00

₱ 60,000.00
₱ 20,000.00
₱ 80,000.00

₱ 25,000.00
₱ 25,000.00
₱ 21,000.00
₱ 55,000.00
₱ 75,000.00
₱ 201,000.00

₱ 50,000.00
₱ 35,000.00
₱ 85,000.00
₱ 426,000.00
1.18%

Char t Title
Column C
25.00%

20.00%

15.00% Total Quality Costs

10.00%

5.00%
 20.00%

15.00%

10.00%

5.00%

0.00%
20X1 20X2 20X3 20X4 20X5

Variance

₱ (10,000.00)
₱ 90,000.00
₱ (240,000.00)
₱ (20,000.00)
₱ (180,000.00)

₱ 60,000.00
₱ 120,000.00
₱ 180,000.00

₱ (150,000.00)
₱ 280,000.00
₱ 60,000.00
₱ 50,000.00
₱ 190,000.00
₱ 430,000.00

₱ 220,000.00
₱ 130,000.00
₱ 350,000.00
₱ 780,000.00
3.00%

sts

Percentage of Sales
 2.80%

1.02%

1.87%

1.33%
7.02%
7.02%

ality Costs
0X5
Variance

₱ - No Variance
₱ 20,000.00 Favorable
₱ 40,000.00 Favorable
₱ - No Variance
₱ 60,000.00

₱ 60,000.00 Favorable
₱ 20,000.00 Favorable
₱ 80,000.00 Favorable

₱ 25,000.00 Favorable
₱ 25,000.00 Favorable
₱ 21,000.00 Favorable
₱ 55,000.00 Favorable
₱ 126,000.00 Favorable

₱ 50,000.00 Favorable
 ₱ 35,000.00 Favorable
₱ 75,000.00 Favorable
₱ 160,000.00 Favorable
₱ 426,000.00 Favorable
1.18%

eport
0X5
Variance

₱ (10,000.00) Unfavorable
₱ 90,000.00 Favorable
₱ (240,000.00) Unfavorable
₱ (20,000.00) Unfavorable
₱ (180,000.00) Unfavorable

₱ 60,000.00 Favorable
₱ 120,000.00 Favorable
₱ 180,000.00 Favorable

₱ (150,000.00) Unfavorable
₱ 280,000.00 Favorable
₱ 60,000.00 Favorable
₱ 50,000.00 Favorable
₱ 240,000.00 Favorable

₱ 220,000.00 Favorable
₱ 130,000.00 Favorable
₱ 190,000.00 Favorable
₱ 540,000.00 Favorable
₱ 780,000.00 Favorable
3.00%

Report
0X5
Budget Variance

₱ 450,000.00 Unfavorable
₱ (177,500.00) Favorable
₱ 390,000.00 Unfavorable
₱ 181,250.00 Unfavorable
₱ 843,750.00 Unfavorable

₱ 437,500.00 Unfavorable
₱ 428,750.00 Unfavorable
₱ 866,250.00 Unfavorable

₱ 437,500.00 Unfavorable
₱ 125,000.00 Unfavorable
₱ 250,000.00 Unfavorable
₱ 87,500.00 Unfavorable
₱ 900,000.00 Unfavorable

₱ 500,000.00 Unfavorable
₱ 250,000.00 Unfavorable
₱ 150,000.00 Unfavorable
₱ 900,000.00 Unfavorable
₱ 3,510,000.00 Unfavorable
y Costs
20X5
 Lara Company
Long-Range Quality Cost Performance Report
For the Year Ended December 31, 20X5
Actual Costs Percentage of Sales
Prevention costs:
Quality planning ₱ 450,000.00
Quality training ₱ 160,000.00
Quality Improvement (Special project) ₱ 390,000.00
Quality reporting ₱ 260,000.00
Total prevention costs ₱ 1,260,000.00 3.50%
Appraisal costs:
Proofreading ₱ 800,000.00
Other inspection ₱ 460,000.00
Total Appraisal costs ₱ 1,260,000.00 3.50%
Internal failure costs:
Correction of typos ₱ 350,000.00
Plate revisions ₱ 100,000.00
Press downtime ₱ 200,000.00
Waste ₱ 70,000.00
Rework ₱ 120,000.00
Total internal failure costs ₱ 840,000.00 2.33%
External failure costs:
Returns/allowances ₱ 400,000.00
Lost sales ₱ 200,000.00
Total external failure costs ₱ 600,000.00 1.67%
Total Quality Costs ₱ 3,960,000.00 11.00%

Lara Company
Long-Range Quality Cost Performance Report
For the Year Ended December 31, 20X5
Actual Costs Long-Range Target Costs
Prevention costs:
Quality planning ₱ 450,000.00 ₱ 450,000.00
Quality training ₱ 160,000.00 ₱ 48,000.00
Quality Improvement (Special project) ₱ 390,000.00 ₱ 390,000.00
Quality reporting ₱ 260,000.00 ₱ 18,200.00
Total prevention costs ₱ 1,260,000.00 ₱ 906,200.00
Appraisal costs:
Proofreading ₱ 800,000.00 ₱ 400,000.00
Other inspection ₱ 460,000.00 ₱ 59,800.00
Total Appraisal costs ₱ 1,260,000.00 ₱ 459,800.00
Internal failure costs:
 Correction of typos ₱ 350,000.00 ₱ -
Plate revisions ₱ 100,000.00 ₱ -
Press downtime ₱ 200,000.00 ₱ -
Waste ₱ 70,000.00 ₱ -
Rework ₱ 120,000.00 ₱ -
Total internal failure costs ₱ 840,000.00 ₱ -
External failure costs:
Returns/allowances ₱ 400,000.00 ₱ -
Lost sales ₱ 200,000.00 ₱ -
Total external failure costs ₱ 600,000.00 ₱ -
Total Quality Costs ₱ 3,960,000.00 ₱ 1,366,000.00
Percentage of Sales 8.80% 3.04%

PREVENTION APPRAISAL
20X1 1% 2%
20X2 2% 3%
20X3 2.50% 4%
20X4 3% 4%
20X5 3.50% 3.50%

Individual Quality Costs Categories

12%

10%

8%

6%

4%

2%

0%
20X1 20X2 20X3 20X4 20X5

PREVENTION APPRAISAL Internal Failure External Failure

Report
X5
Quality Costs Percentage of Sales

₱ 450,000.00
₱ 160,000.00
₱ 390,000.00
₱ 260,000.00
₱ 1,260,000.00 2.80%

₱ 400,000.00
₱ 59,800.00
₱ 459,800.00 1.02%

₱ 350,000.00
₱ 100,000.00
₱ 200,000.00
₱ 70,000.00
₱ 120,000.00
₱ 840,000.00 1.87%

₱ 400,000.00
₱ 200,000.00
₱ 600,000.00 1.33%
₱ 3,159,800.00 7.02%

Lar
Report Long-Range Qualit
X5 For the Year En
Budget Variance
Prevention costs:
₱ - No Variance Quality planning
₱ 112,000.00 Unfavorable Quality training
₱ - No Variance Quality Improvement (Special project)
₱ 241,800.00 Unfavorable Quality reporting
₱ 353,800.00 Unfavorable Total prevention costs
Appraisal costs:
₱ 400,000.00 Unfavorable Proofreading
₱ 400,200.00 Unfavorable Other inspection
₱ 800,200.00 Unfavorable Total Appraisal costs
Internal failure costs:
 ₱ 350,000.00 Unfavorable Correction of typos
₱ 100,000.00 Unfavorable Plate revisions
₱ 200,000.00 Unfavorable Press downtime
₱ 70,000.00 Unfavorable Waste
₱ 120,000.00 Unfavorable Rework
₱ 840,000.00 Unfavorable Total internal failure costs
External failure costs:
₱ 400,000.00 Unfavorable Returns/allowances
₱ 200,000.00 Unfavorable Lost sales
₱ 600,000.00 Unfavorable Total external failure costs
₱ 2,594,000.00 Unfavorable Total Quality Costs
5.76% Unfavorable Percentage of Sales

Internal Failure External Failure

7% 10%
6% 7%
4% 6%
3.50% 3.50%
2% 2%

tegories

20X4 20X5

External Failure
 Lara Company
Long-Range Quality Cost Performance Report
For the Year Ended December 31, 20X5
Actual Costs Long-Range Target Costs Budget Variance

₱ 450,000.00 ₱ 450,000.00 ₱ - No Variance

₱ 160,000.00 ₱ 54,000.00 ₱ 106,000.00 Unfavorable
₱ 390,000.00 ₱ 430,000.00 ₱ (40,000.00) Favorable
₱ 260,000.00 ₱ 18,200.00 ₱ 241,800.00 Unfavorable
₱ 1,260,000.00 ₱ 952,200.00 ₱ 307,800.00 Unfavorable

₱ 800,000.00 ₱ 430,000.00 ₱ 370,000.00 Unfavorable

₱ 460,000.00 ₱ 62,400.00 ₱ 397,600.00 Unfavorable
₱ 1,260,000.00 ₱ 492,400.00 ₱ 767,600.00 Unfavorable
₱ 350,000.00 ₱ - ₱ 350,000.00 Unfavorable
₱ 100,000.00 ₱ - ₱ 100,000.00 Unfavorable
₱ 200,000.00 ₱ - ₱ 200,000.00 Unfavorable
₱ 70,000.00 ₱ - ₱ 70,000.00 Unfavorable
₱ 120,000.00 ₱ - ₱ 120,000.00 Unfavorable
₱ 840,000.00 ₱ - ₱ 840,000.00 Unfavorable

₱ 400,000.00 ₱ - ₱ 400,000.00 Unfavorable

₱ 200,000.00 ₱ - ₱ 200,000.00 Unfavorable
₱ 600,000.00 ₱ - ₱ 600,000.00 Unfavorable
₱ 3,960,000.00 ₱ 1,444,600.00 ₱ 2,515,400.00 Unfavorable
8.80% 3.21% 5.76% Unfavorable