Silicon Solutions Inc. manufactures RAM memory chips for personal computers. An activity analysis was conducted, and the following activity costs were identified with the manufacture and sale of memory chips: 1 Activities Activity Cost 2 Correct shipment errors $144,000.00 3 Disposing of scrap 90,000.00 4 Emergency equipment maintenance 99,000.00 5 Employee training 36,000.00 6 Final inspection 81,000.00 7 Inspecting incoming materials 54,000.00 8 Preventive equipment maintenance 27,000.00 9 Processing customer returns 90,000.00 10 Scrap reporting 36,000.00 11 Supplier development 9,000.00 12 Warranty claims 234,000.00 13 Total $900,000.00 Required: A. Identify the cost of quality classification for each activity. B. Prepare a cost of quality report. Assume sales for the period were $3,000,000.Refer to the Quality Cost Classifications list provided for the exact wording of the answer choices for text entries. Round percents to one decimal place. C. Interpret the cost of quality report.

1	Activities	Activity Cost
2	Correct shipment errors	$144,000.00
3	Disposing of scrap	90,000.00
4	Emergency equipment maintenance	99,000.00
5	Employee training	36,000.00
6	Final inspection	81,000.00
7	Inspecting incoming materials	54,000.00
8	Preventive equipment maintenance	27,000.00
9	Processing customer returns	90,000.00
10	Scrap reporting	36,000.00
11	Supplier development	9,000.00
12	Warranty claims	234,000.00
13	Total	$900,000.00

	Required:
A.	Identify the cost of quality classification for each activity.
B.	Prepare a cost of quality report. Assume sales for the period were $3,000,000.Refer to the Quality Cost Classifications list provided for the exact wording of the answer choices for text entries. Round percents to one decimal place.
C.	Interpret the cost of quality report.

Cost of Quality Report Question not attempted. Quality Cost Classification 6 Total Silicon Solutions Cost of Quality Report Quality Cost X Shaded cells have feedback Score: 0/79 Percent of Total Percent of Total Sales Quality Cost