The following are the expected quality costs of Best Bike Ltd, a major bicycle manufacturer: Quality inspections
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Question:
The following are the expected quality costs of Best Bike Ltd, a major bicycle manufacturer:
| Quality inspections during processing | $10,800 |
|---|---|
| Cost of quality training programs | $25,700 |
| Cost of replacement bikes provided under warranty | $13,500 |
| Laboratory testing of bikes and components | $16,800 |
| Cost of rewelding faulty joints discovered during processing | $13,400 |
| Sales commissions on faulty bikes returned by customers | $7,600 |
| Operating an X-ray machine to detect faulty welds | $23,500 |
| Rework on defective wheels | $18,900 |
| Lost contribution on time to correct production line quality problems | $22,300 |
| Contribution margin forgone on lost future bike sales | $11,900 |
Calculate the total appraisal costs.
$51,100
$33,000
$34,300
$54,600
$27,600
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