Problem 9-1 1. COST OF QUALITY REPORTS. Samstone Industries makes false stone facings that are used in a variety of residential and commercial building projects. It recently installed a cost of quality reporting system. The following is the list of its quality costs for 20x6. Cost $50,000 $102,500 $35,000 $47,500 $10,000 $32,500, $16,500 $225,000 $35,000 $15,000 $92,000 $50,000 $20,000 $75,000 $25,000 Quality Activity Recalls Rework Final inspection On-site repair calls TQM training Field testing Salvage Lost sales Raw material inspection Quality audits Scrap costs Piece part inspection Supplier certification Returns Workforce training $831,000 REQUIRED: a. Develop a cost of quality report for the company for 20x6. State your amounts in both dollars and percent of the total. b. The company's revenue for the year was $10,000,000. What percent of its total revenue are the quality costs? c. Where should the company place its attention in the coming year to most improve its quality performance? Why?

1. COST OF QUALITY RFPORTS. Samstone Indestries makes false stone facings that are used in a variety of residential and commercial buiding projects. It recently installed a cost of quality reporting svetem. Tha followina ik that list nf ite muality costs for 20x6. RHCIIRET?: a. Develop a cost of quahiy roport for the company for 20x6, State your amounts in both dollars and percent of the total b. The company's reveniae for the ycar was $10,000,000. What percent of its total revenue are the quality costs? c. Where should the company place its attention in the coming year to most improve its equality performance? Why