Question 37(1 point)

Reference: 11-04

Eade Company's quality cost report is to be based on the following data:

Systems development $32,000

Final product testing and inspection $13,000

Quality data gathering, analysis, and reporting $11,000

Net cost of scrap $62,000

Returns arising from quality problems $59,000

Amortization of test equipment $57,000

Rework labour and overhead $18,000

Test and inspection of incoming materials $40,000

Product recalls $36,000

What will be the total prevention cost appearing on the quality cost report?

Question 37 options:

A)

$45,000.

B)

$43,000.

C)

$47,000.

D)

$51,000.