Burrow Company's quality report for October 2019 showed the following information:

Profit for a good unit P60

Profit for a defective unit P25

Cost to rework a defective unit P12

Cost to process a returned unit P23

Quality training P23,000

Quality technology P100,000

Market research and methods costs P67,000

Monitoring and inspection costs P120,000

Product verification costs P30,000

Litigation related to total product failure P60,000

Opportunity cost of lost customers while litigation is

being settled P80,000

Total defective unit 10,500

Number of units reworked 7,500

Number of customer units returned 1,850

Required: Calculate the following:

1.Total prevention cost

2.Total appraisal cost

3.Total external failure cost

4.Total internal failure cost

5.Total quality cost

Answer rating: 100% (QA)

Lets calculate the different quality costs 1 Total prevention cost Quality training ... View the full answer