The following information shows last years quality related costs for the Kaeding Company. Total sales for the year were $130,000,000.

What is the total cost of prevention?

1. $2,821,000

2. $1,429,000

3. $1,845,000

4. $1,339,000

What is the total cost of appraisal?

1. $2,821,000

2. $1,339,000

3. $1,429,000

4. $1,845,000

Item Quality engineering Warranty claims Product liability lawsuits Research of customer needs Maintenance of test equipment Returned products Rework costs Quality training Process control monitoring Inspection of and testing of incoming materials Repair costs in the field Statistical process control Product recalls Waste Net cost of scrap Product quality audits Downtime due to defects Supplier certification Amount $624,000 3,016,000 5,889,000 117,000 442,000 1,547,000 1,612,000 195,000 1,261,000 481,000 1,079,000 325,000 2,613,000 936,000 806,000 637.000 208,000 78,000 Item Quality engineering Warranty claims Product liability lawsuits Research of customer needs Maintenance of test equipment Returned products Rework costs Quality training Process control monitoring Inspection of and testing of incoming materials Repair costs in the field Statistical process control Product recalls Waste Net cost of scrap Product quality audits Downtime due to defects Supplier certification Amount $624,000 3,016,000 5,889,000 117,000 442,000 1,547,000 1,612,000 195,000 1,261,000 481,000 1,079,000 325,000 2,613,000 936,000 806,000 637.000 208,000 78,000