The CEO of Smith Snacks Corp. is concerned about the amount of resources currently spent on customer warranty claims. Each box of snacks is printed with the following logo:

''Satisfaction guaranteed or your money back.'' Since the number of claims is high, she would like to evaluate what costs are being incurred to ensure the quality of the product.

Cost of disposal of rejected products	$12,000
Preventative maintenance on factory equipment	$6,000
Production loss due to machine breakdowns	$6,800
Inspection of raw materials	$3,800
Warranty claims	$445,000
Cost of defective products found at the inspection point	$82,000
Training factory personnel	$44,400
Recall of Batch #5937	$185,000
Inspecting products when halfway through the production process	$55,000

Required

Prepare a Costs of Quality report. In addition to listing the costs by category, determine the percentage of the total costs of quality incurred in each cost category.

Answer rating: 100% (QA)

A Costs of Quality COQ report categorizes the costs associated with maintaining product quality The ... View the full answer