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 result of the activity analysis is summarized as follows: Activities Activity Cost Correcting invoice errors $17,960 Disposing of incoming materials with poor quality 13,470 Disposing of scrap 67,350 Expediting late production 58,370 Final inspection 44,900 Inspecting incoming materials 8,980 Inspecting work in process 49,390 Preventive machine maintenance 31,430 Producing product 134,700 Responding to customer quality complaints 22,450 Total $449,000 The production process is complicated by quality problems, requiring the production manager to expedite production and dispose of scrap. Required: