E1-24A PREPARE A COST OF QUALITY REPORT (Learning Objective/) The CEO of Salty Snackfoods is concerned about the amount of resources currently spent on customer warranty claims. Each box of snacks is printed with the guarantee "Satisfaction guaranteed or your money back Since the claims are so high, she would like to evaluate what costs are being incurred to ensure the quality of the product. The following information was collected from various departments within the . warranty claimo Cost of defective products found at the inspection point) Training factory personnel Hecall of catch #NEL/4 $400,000 04,000 26,000 176,000 inspecting products halfway through the production process 88,000 Cost of disposing of rejented products Preventive maintenance on factory equipment Production loss due to machine breakdowns 15,000 Inspection of raw materials 5,000 Cost of Quality Report for Salty Snackfoods Total Costs of Quality Percentage of total costs of quality (rounded) $ 26,000 7.000 $ 33,000 4% Prevention Costs: Personnel training Preventative maintenance Total prevention costs Appraisal Costs: Inspecting products at halfway point Inspection of raw materials Total appraisal costs Internal Failure Costs: Production loss due to machine breakdowns Cost of defective products Cost of disposing of rejected products Total internal failure costs $ 55,000 5,000 External Failure Costs: Recall of Batch #59374 Warranty claims Total external failure costs Total Costs of Quality $ 60,000 8% $ 15,000 94,000 12.000 $121,000 15% $175,000 400,000 $575.000 $789.000 73% 100% 23 Please classify the following costs based on Chapter 1. (1) Cost of inspection of raw materials. 5000 A/ (2) Rework. defective products during the inspection. A/ (4) Identify preferred suppliers. A/ (5) Strength-testing one item from a batch of products. shutdown. A/ (3) Cost of A/ (6) Production loss due to machine A/ (7) Warranty returns.