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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

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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 Quality Cost Classification Correct shipment errors $150,000 Appraisal Disposing of scrap 95,000 Appraisal 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 250,000 Total $1,000,000 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 Printem 60,000 External failure 40,000 Inspecting incoming materials Preventive equipment maintenance Processing customer returns Scrap reporting Supplier development Warranty claims 90.000 45,000 15,000 250,000 $1,000,000 Total 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 Percent of Quality Cost Total Sales Classification Prevention Appraisal internal failures Internal failure External failure external failures Total prevention costs appraisal costs c. The category with the fewest number of quality activities is Nearly fifty percent of the quality activity costs are claims, which is an) Disposing of scrap, emergency equipment maintenance, and scrap reporting are all . The highest single cost is warranty

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