7.Schedule of Activity Costs

Quality Control Activities	Activity Cost
Process audits	$50,400
Training of machine operators	25,300
Processing returned products	16,500
Scrap processing (disposal)	24,000
Rework	6,400
Preventative maintenance	29,200
Product design	44,900
Warranty work	9,300
Finished goods inspection	22,000

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

a.$20,640

b.$25,800

c.$56,200

d.$81,500