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a. Identify the cost of quality classification for each activity. Activity Quality Activities Quality Cost Classification Cost Correct shipment errors $150,000 Disposing of scrap 95,000
a. Identify the cost of quality classification for each activity. Activity Quality Activities Quality Cost Classification Cost Correct shipment errors $150,000 Disposing of scrap 95,000 Emergency equipment maintenance 125,000 Employee training 50,000 Final inspection 80,000 Inspecting incoming materials 60,000 40,000 90,000 Preventive equipment maintenance Processing customer returns Scrap reporting Supplier development 45,000 15,000 Warranty claims 250,000 Total $1,000,000 b. Prepare a cost of quality report. Assume that the sales for the period were $4,000,000. If required, round percents to one decimal place. Quality Cost Classification Prevention Appraisal Internal failure Meagher Solutions Inc. Cost of Quality Report Percent of Total Percent of Quality Cost Quality Cost Total Sales % % % % % % External failure % % Total % % C. The category with the fewest number of quality activities is . Nearly fifty percent of the quality activity costs are . The highest single cost is warranty claims, which is a(n) Disposing of scrap, emergency equipment maintenance, and scrap reporting are all
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