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Cost of quality The following production information about quality costs has been gathered for June: Total defective units 1080 Number of units reworked 893 Number
Cost of quality The following production information about quality costs has been gathered for June:
Total defective units | 1080 |
Number of units reworked | 893 |
Number of units returned | 128 |
Total prevention cost | $41,400 |
Total appraisal cost | $12,750 |
Per-unit profit for defective units | $20 |
Per-unit profit for good units | $55 |
Cost to rework defective units | $18 |
Cost to handle returned units | $14 |
Using these data, calculate the following: a. Total cost to rework $Answer b. Profit lost from not reworking all defective units $Answer c. Cost of processing customer returns $Answer d. Total failure costs $Answer e. Total quality cost $Answer
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