The T products are manufactured using raw materials and components from the beginning of the process. If there is waste, raw materials and components cannot be saved.

Before supplying the product to the sales department, the plant makes some statistical control for quality checking. In average, 5 % of the gross production is wasted through it. On this same gross production, 3 % pass through this control and are delivered to the customer and then replaced by the after-sales service.

The company provides you with the following accounting information for the year 2019:

- Standard manufacturing cost for a production of 2000 units by month1: Raw materials and components: 100 euros

Direct Labour: 80 euros

Manufacturing Overheads: 100 euros

Distribution Costs2: 38 euros

Standard costs: 318 euros The cost of the statistical control is 4000 euros by month.

After-sales costs are the following:

The cost of a replacement on claim, not considering the replacement of the product itself, is estimated to 140 euros, but the marketing also suggests adding 80 euros for deterioration of the image of the product quality.

During April, a production process dysfunction provoked delay in the deliveries and then the cancellation of an order of 120 units. Further, an exceptional discount of 8 euros is given to 30% of the deliveries (on net production) that where delayed.

Please, provide an estimate of the cost linked to quality problems in 2019.