Leese Inc. has the following quality financial data for its most recent fiscal year.

Rework costs...............................................................................$110,000

Warranty repair costs.................................................................280,000

Product line inspection..............................................................95,000

Design engineering.....................................................................300,000

Supplier evaluation.....................................................................240,000

Labor training.............................................................................150,000

Product testing............................................................................65,000

Breakdown maintenance...........................................................70,000

Product scrap..............................................................................195,000

Cost of returned goods.............................................................180,000

Customer support.....................................................................35,000

Product liability claims..............................................................80,000

The total amount of prevention costs that should be reported in a cost of quality report for the year is:

a. $390,000.

b. $450,000.

c. $690,000.

d. $755,000.