Reference no: EM132690763
Problem - Pareto chart - Silicon Solutions Inc. manufactures RAM memory chips for personal computers. An activity analysis was conducted, and the following activity costs were identified with the manufacture and sale of memory chips:
Activities - Activity Cost
Correct shipment errors $84,000
Disposing of scrap 72,000
Emergency equipment maintenance 54,000
Employee training 30,000
Final inspection 72,000
Inspecting incoming materials 24,000
Preventive equipment maintenance 12,000
Processing customer returns 60,000
Scrap reporting 24,000
Supplier development 12,000
Warranty claims 156,000
Total $600,000
Required - Prepare a Pareto chart of these activities.