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

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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