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The following production information about quality costs has been gathered for June: Total defective units 7 2 0 Number of units reworked 5 9 5

The following production information about quality costs has been gathered for June:
Total defective units 720
Number of units reworked 595
Number of units returned 85
Total prevention cost $27,600
Total appraisal cost $8,500
Per-unit profit for defective units $20
Per-unit profit for good units $55
Cost to rework defective units $18
Cost to handle returned units $14
Using these data, calculate the following:
a. Total cost to rework Answer: $10,710
b. Profit lost from not reworking all defective units $Answer
0
c. Cost of processing customer returns Answer: $1,190
d. Total failure costs $Answer
0
e. Total quality cost $Answer
0

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