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 $15,040 Disposing of incoming materials with poor quality 11,280 Disposing of scrap 45,120 Expediting late production 37,600 Final inspection 30,080 Inspecting incoming materials 7,520 Inspecting work in process 41,360 Preventive machine maintenance 26,320 Producing product 139,120 22,560 $376,000 Responding to customer quality complaints Total The production process is complicated by quality problems, requiring the production manager to expedite production and dispose of scrap. Required: 1. On paper or in a spreadsheet program, prepare a Pareto chart for each of the activities listed above. Answer the following: What type of chart is a Pareto chart? Which activity appears first, in order from left to right?