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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
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 |
| Preventive maintenance | 30,000 |
| Product design | 46,000 |
| Warranty work | 12,000 |
| Finished goods inspection | 23,000 |
From the provided schedule of activity costs, determine the internal failure costs.
A. $37,000
B. $25,000
C. $8,000
D. $33,000
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Management Accounting Information for Decision-Making and Strategy Execution
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
6th Edition
137024975, 978-0137024971
