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
2
3
4
5
6	Total