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The manager at Seaside International prepares a Cost of Quality report to report the following expenses: Inspection of raw material costs $6,200 Warranty costs for
The manager at Seaside International prepares a Cost of Quality report to report the following expenses: Inspection of raw material costs $6,200 Warranty costs for warranty claims $300,000 Cost to dispose of rejected products $15,000 Train hourly manufacturing personnel $60,000 Recall of batch #2894 $200,000 Production losses due to machine malfunctions $27,000 Cost of defective products found at inspection audit $78,000 Inspecting products when halfway through the production process $24,000 What is the total cost of quality in the external failure cost category? O A. $500,000 B. $6,200 C. $200,000 D. $665,000 O E $242,000
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