1. Schedule of Activity Costs
   Quality Control Activities	Activity Cost
   Process audits	$50,000
   Training of machine operators	28,000
   Processing returned products	19,000
   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 value-added costs.

   a.$177,000

   b.$104,000

   c.$191,000

   d.$156,000