Question
This year, Finn Corporation implemented programs designed to assess the costs of quality for the company. However, the company recently suffered a data loss, and
This year, Finn Corporation implemented programs designed to assess the costs of quality for the company. However, the company recently suffered a data loss, and some of its records have been either partially or completely erased. The accounting intern for Finn Corporation has located a copy of a recent cost of quality report, shown as follows, but the quality activity analysis used to create the report has been lost. Finn Corporation Cost of Quality Report Quality Cost Classification Quality Cost Percent of Total Quality Cost Percent of Total Sales Prevention $282,720 62% 14.9% Appraisal 72,960 16 3.8 Internal failure 59,280 13 3.1 External failure 41,040 9 2.2 Totals $456,000 100% 24.0% Quality Activity Analysis As mentioned on the Cost of Quality Report, Finn Corporation recently suffered a data loss, and some of its records have been lost. After reviewing the Cost of Quality Report, recreate the quality activity analysis in the following table from which the cost of quality report was created. Quality Control Activities Activity Cost Rework ______ Inspecting incoming raw materials ______ Warranty work _______ Process improvement effort ______ Total activity cost $456,000
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