Question: A quality control activity analysis indicated the following four activity costs of a hotel. Line Item Description Amount Verifying credit card information $332,000 Customer service
A quality control activity analysis indicated the following four activity costs of a hotel.
| Line Item Description | Amount |
|---|---|
| Verifying credit card information | $332,000 |
| Customer service training | 166,000 |
| Discounting room rates due to poor customer service | 83,000 |
| Correcting charges to customer invoices | 249,000 |
| Total | $830,000 |
Sales are $8,300,000 for the year. Prepare a cost of quality report. Round your answers to one decimal place, if necessary.
| Quality Cost Classification | Quality Cost | Percent of Total Quality Cost | Percent of Total Sales |
|---|---|---|---|
| Prevention | $fill in the blank 1 | fill in the blank 2% | fill in the blank 3% |
| Appraisal | fill in the blank 4 | fill in the blank 5% | fill in the blank 6% |
| Internal failure | fill in the blank 7 | fill in the blank 8% | fill in the blank 9% |
| External failure | fill in the blank 10 | fill in the blank 11% | fill in the blank 12% |
| Totals | $fill in the blank 13 | fill in the blank 14% | fill in the blank 15% |
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