Home Health Care, LLP, incurred the service-related activity costs for the month that follow. Total sales....................................... $24,000
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Total sales....................................... $24,000
Reinspection of rework.............................. 50
Investigation of service defects.................... 300
Lawsuits.............................................. 100
Quality-related downtime........................... 75
Failure analysis........................................50
Customer complaint processing................... 500
Retesting of service scheduling..................... 25
Restoration of reputation.............................. 0
Lost sales............................................ 100
Replacement services.............................. 500
Prepare an analysis of the costs of nonconformance by identifying the internal failure costs and external failure costs, and compute the percentage of sales represented by internal failure costs, external failure costs, and total costs of nonconformance.
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Related Book For
Managerial Accounting
ISBN: 978-1133940593
10th edition
Authors: Susan V. Crosson, Belverd E. Needles
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