Question
A quality control activity analysis indicated the following four activity costs of a manufacturing department: 1 Rework $37,440.00 2 Inspecting incoming raw materials 51,840.00 3
A quality control activity analysis indicated the following four activity costs of a manufacturing department:
1 | Rework | $37,440.00 |
2 | Inspecting incoming raw materials | 51,840.00 |
3 | Warranty work | 25,920.00 |
4 | Process improvement effort | 172,800.00 |
5 | Total | $288,000.00 |
Amount Descriptions | |
Appraisal | |
External failure | |
Internal failure | |
Lead time | |
Prevention | |
Setup time |
Sales are $1,200,000. Prepare a cost of quality report. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Round percents to one decimal place.
Cost of Quality Report |
1 | Quality Cost Classification | Quality Cost | Percent of Total Quality Cost | Percent of Total Sales |
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6 | Total |
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