Cost of Quality Report Meagher Solutions Inc. manufactures memory chips for personal computers. An activity analysis was conducted, and the following activity costs were identified with the manufacture and sale of memory chips: a. Identify the cost of quality classification for each activity. Quality Activities Activity Cost Correct shipment errors $150,000 Disposing of scrap 95,000 Emergency equipment maintenance 125,000 Employee training 50,000 Final inspection 80,000 Inspecting incoming materials 60,000 Preventive equipment maintenance 40,000 Processing customer returns 90,000 Scrap reporting 45,000 Supplier development 15,000 Warranty claims Total 250,000 $1,000,000 Quality Cost Classification b. Prepare a cost of quality report. Assume that the sales for the period were $4,000,000. If required, round percents to one decimal place. Meagher Solutions Inc. Cost of Quality Report Quality Cost Percent of Total Quality Cost Classification Quality Cost Percent of Total Sales Prevention % % Appraisal % % Internal failure % % External failure % % % % Total are c. The category with the fewest number of quality activities is The highest single cost is warranty claims, which is a(n) emergency equipment maintenance, and scrap reporting are all Nearly fifty percent of the quality activity costs Disposing of scrap