20.

Schedule of Activity Costs

Quality Control Activities	Activity Cost
Process audits	$49,200
Training of machine operators	28,700
Processing returned products	19,200
Scrap processing (disposal)	25,700
Rework	6,900
Preventative maintenance	31,800
Product design	42,000
Warranty work	9,700
Finished goods inspection	23,400

From the above schedule of activity costs, determine the internal failure costs.

a.$32,600

b.$26,080

c.$103,500

d.$61,500