Q8

Schedule of Activity Costs Activity Cost Quality Control Activities $50,000 Process audits 28,000 Training of machine operators 19,000 Processing returned products Scrap processing (disposal) 25,000 Rework 8,000 Preventative maintenance 30,000 Product design 46,000 Warranty work 12,000 Finished goods inspection 23,000 From the above schedule of activity costs, determine the internal failure costs. a. $25,000 b. $33,000 Oc. $37,000 d. $8,000