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Cost of quality Managers at Walla-Walla LTD want to determine the company's cost of quality. The following information has been gathered from the records for
Cost of quality Managers at Walla-Walla LTD want to determine the company's cost of quality. The following information has been gathered from the records for August: Defective units 4,800 Units reworked 960 Defective units returned 320 $14,000 Appraisal costs Cost per unit for rework $18 Prevention costs $68,000 $85 $43 Profit per good unit produced and sold Profit per defective unit sold Cost per unit for customer returns Cost of warranty work $14. $7,200 Compute the following: a. Lost profits from selling defective work $ 0 b. Total costs of failure $ 0 C. Total quality cost $ 0
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