Question: A quality control activity analysis indicated the following four activity costs of a manufacturing department: 1 Rework $37,440.00 2 Inspecting incoming raw materials 51,840.00 3
A quality control activity analysis indicated the following four activity costs of a manufacturing department:
| 1 | Rework | $37,440.00 |
| 2 | Inspecting incoming raw materials | 51,840.00 |
| 3 | Warranty work | 25,920.00 |
| 4 | Process improvement effort | 172,800.00 |
| 5 | Total | $288,000.00 |
| Amount Descriptions | |
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| External failure | |
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Sales are $1,200,000. Prepare a cost of quality report. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Round percents to one decimal place.
| Cost of Quality Report |
| 1 | Quality Cost Classification | Quality Cost | Percent of Total Quality Cost | Percent of Total Sales |
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