Question: a. Using the information in Exercise 27-17, identify the cost of quality classification for each activity. b. Prepare of cost of quality report. Assume sales
a. Using the information in Exercise 27-17, identify the cost of quality classification for each activity.
b. Prepare of cost of quality report. Assume sales for the period were $3,000,000. Round percents to one decimal place.
c. Interpret the cost of quality report.
Exercise 27-17
Activities Activity Cost
Correct shipment errors ........................$ 144,000
Disposing of scrap ............................. 90,000
Emergency equipment maintenance .......... 99,000
Employee training ............................ 36,000
Final inspection ................................ 81,000
Inspecting incoming materials ................ 54,000
Preventive equipment maintenance ......... 27,000
Processing customer returns ................. 90,000
Scrap reporting ............................... 36,000
Supplier development ....................... 9,000
Warranty claims ............................ 234,000
Total .........................................$900,000
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