The following production information about quality costs has been gathered for June 2010: Total defective units ...........
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The following production information about quality costs has been gathered for June 2010:
Total defective units ........... 580
Number of units reworked .......... 380
Number of units returned ......... 100
Total prevention cost ............$24,000
Total appraisal cost ........... $8,500
Per-unit profit for defective units ....... $20
Per-unit profit for good units ........ $56
Cost to rework defective units ....... $16
Cost to handle returned units ........ $10
Using these data, calculate the following:
a. Total cost to rework
b. Profit lost from not reworking all defective units
c. Cost of processing customer returns
d. Total failure costs
e. Total quality cost
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Related Book For
Cost Accounting Foundations and Evolutions
ISBN: 978-1111626822
8th Edition
Authors: Michael R. Kinney, Cecily A. Raiborn
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