Home Health Care, LLP, incurred the following service-related activity costs for the month. Prepare an analysis of
Question:
Home Health Care, LLP, incurred the following service-related activity costs for the month. Prepare an analysis of the costs of conformance by identifying the prevention costs and appraisal costs, and compute the percentage of sales represented by prevention costs, appraisal costs, and total costs of conformance.
Total sales .............$22,000
Quality training of employees ...... 500
Vendor audits ........... 400
Quality-certified vendors ........ 100
Preventive maintenance ....... 300
Quality sampling of services ..... 200
Field testing of new services ..... 250
Quality circles ............. 50
Quality improvement projects ..... 150
Technical service support ....... 75
Inspection of services rendered ...... 175
Step by Step Answer:
Managerial Accounting
ISBN: 978-0618777181
8th Edition
Authors: Susan V. Crosson, Belverd E. Needles