59

Schedule of Activity Costs

Quality Control Activities	Activity Cost
Process audits	$50,900
Training of machine operators	30,000
Processing returned products	20,200
Scrap processing (disposal)	24,900
Rework	6,200
Preventative maintenance	28,400
Product design	42,300
Warranty work	9,400
Finished goods inspection	22,800

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

$24,880

$31,100

$60,700

$103,000