Assume you are the management accountant for the Foleo Group. James and Leon have called you and the CFO into a meeting to discuss concerns they have with the number of SliFones that are being returned by customers under warranty. They have pulled some numbers from the accounting system and elsewhere regarding not only the warranty costs, but also other expenses associated with the quality of the phones for the current year. The directors have handed you the below costs and asked you to look into why faulty SliFones are being returned by customers.

$\backslash$table$[[$Quality Activity,$\backslash$table$[[$Cost of Quality$],[$Activity$]]],[$Testing phones during production processes,$$25,000$