Activity-Based Quality Costing

Abernathy, Inc., produces two different generators and is concerned about their quality. The company has identified the following quality activities and costs associated with the two products:

	Generator A	Generator B
Units produced	161,300	345,500
Warranty work (units)	1,790	880
Scrapped units (number)	3,500	880
Inspection (hours)	3,450	1,690
Quality training (hours)	90	90
Activities:
Performing warranty work	$843,720
Scrapping units	639,480
Inspecting	282,700
Quality training	90,000

Required:

1. Calculate the quality cost per unit for each product, and break this unit cost into quality cost categories. If required, round your answers to the nearest cent.

	Generator A	Generator B
Unit cost	$	$

Which of the two seems to have the lowest quality?