eBook Pareto Chart and Cost of Quality Report for a Manufacturing Company The president of Mission Inc. has been concerned about the growth in costs over the last several years. The president asked the controller to perform an activity analysis to gain a better insight into these costs. The activity analysis revealed the following: Activities Activity Cost Correcting invoice errors $7,500 Disposing of incoming materials with poor quality 15,000 Disposing of scrap 27,500 Expediting late production 22,500 Final inspection 20,000 5,000 25,000 15,000 97,500 15,000 Total $250,000 Inspecting incoming materials Inspecting work in process Preventive machine maintenance Producing product Responding to customer quality complaints The production process is complicated by quality problems, requiring the production manager to expedite production and dispose of scrap. Required: Check My Work 3 more Check My Work uses remaining Previous Next