Area

Gamma Corp. had total sales of $3,200,000 for the fiscal year ending on December 31, 20X1. The company's costs of quality are as follows:

Product liability	$219,000
Marketing research	78,000
Design reviews	58,000
Packaging inspection	42,000
Field testing	55,000

Calculate Gamma's appraisal cost for the year.

a.$97,000

b.$219,000

c.$136,000

d.$100,000

Unique Company has the following data:

Unique Company
This Week, December 6
Net hours	5,000
Materials	$260,000
Salaries/Wages	$170,000
Machining	$95,000
Other costs	$1,000
Total cost	$526,000

During the week of December 6, Unique Company produced and shipped 4,000 units of Model P and 11,000 units of Model Q, for a total of 15,000 units. Model P has a cycle time of 1.25 hours, and Model Q has a cycle time of 0.50 hour. Assume that the value-stream costs and total units shipped apply only to one model (a single-product value stream). Calculate the unit cost. (Round answer to two decimal places.)

a.$78.88 per unit

b.$51.18 per unit

c.$52.28 per unit

d.$35.07 per unit