Circle K Toys, Incorporated manufactures toys and children's clothing and sells these products to retail outlets. The following costs were incurred in performing quality activities at Circle K during the year:

Product recall activities	$ 370,000
Quality training activities	$ 240,000
Quality improvement activities	$ 154,000
Warranty claim activities	$ 109,000
Quality inspection and testing activities	$ 61,000
Rework activities	$ 38,000
Quality data collection and reporting activities	$ 15,000

What is the total of the internal failure costs for Circle K?

		$517,000
		$53,000
		$99,000
		$38,000