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Read the scenario below and calculate the total cost of Quality for last month. Organize/categorize the individual "line item costs by each of the four costs of quality. Then calculate the cost for each of the four primary costs of quality and the total cost of quality. Exercise Objective: To properly identify the four cost of quality and calculate the total cost of quality. Course Learning Objectives: Use a variety of current industry quality tools for measuring and monitoring quality: Define foundational concepts related to quality and quality management. UNG Inc., a manufacturer of widgets, has experienced the following in the previous month. Six (6) products were returned. Of these two (2) were replaced. The production cost is $300 per unit. The other four (4) units were repaired under warranty at a cost of $100 for materials and labor (for all). All replacement or warranty repaired unit are returned shipped to customer by expedited shipping at a cost of $75 per unit They reported 58 units that failed inspection. Of those 22 were not repairable. The material invested in those units totaled $3400. They were sent to recycling reclaim where $250 was paid to UNG by the recyclers. The lost value of the invested labor direct labor + benefits and taxes) was $800. To replace the 22 units that were scrapped. $500 of overtime labor was required. The remaining 36 units were reworled. Replacement parts for those totaled $300. The labor cost direct labor + benefits and taxes) for the rework was $600. The cost for reinspection of the reworked units was 5200. Additionally, when the bad units were found production was stopped for 30 minutes to troubleshoot this issue so that it would not continue to occur for subsequent production. The value of the lost production time (labor - benefits taxes and depreciation recovery by capital equipment) was valued at $650, UNG, Inc. has a person in their Customer Service department who handles customer complaints and issues RMA (return material authorization). The monthly charge is $1400 to cover the portion of this person's salary (plus benefits taxes). The monthly portion of the salary (plus benefits/taxes) of the inspector who performs receiving inspection (materials received from suppliers) is $2800. The Procurement Department conducted an audit/assessment of a possible new supplier who could provide improved raw materials. The employee costs (salaries + benefits/taxes) plus travel expenses were 54400. Additionally, the annual audit of one of UNG's existing supplier occurred costing $1800 in employee and travel expenses. There are two (2) full-time inspectors who check finished products and perform in-process audits. The monthly portion of their salaries (plus benefits taxes) is $5800. The monthly calibration of equipment cost $350. During last month, a Kiazen improvement "event" (project) occurred using a cross functional team. The employee cost (salaries + benefits taxes) and project expenses (equipment and materials) totaled $12000. The monthly portion of the quality system records-keeper salary (plus benefits taxes) is $2500. One customer had installed a widget that failed. UNG, Inc sent a technician to replace the widget at the customer's site. The employee costs (salaries + benefits taxes) plus travel expenses were $3500 plus a new widget at cost) One department conducted skills training class for two (2) employees. The total cost of the training was $500 plus employee labor costs of $300 (per person). (see reverse side for more) Below would be a general idea of a good format (as from accounting). $5,000 External Failure Cost (state item, for example, Warranty repair) (Item 2) (Item 3) Subtotal for Ext. Failure Cost XXX XXX Sx.xxx Then overall summary, for example: Total Cost of Quality Prevention Cost Sx.xxx Appraisal Cost X.XXX External Failure Cost X.XXX Internal Failure Cost X.XXX Sxx.xxx