Eakle Company”s quality cost report is to be based on the following data:
|
Supervision of testing and inspection activities |
$29,000 |
|
Warranty repairs and replacements |
$12,000 |
|
Net cost of scrap |
$53,000 |
|
Test and inspection of incoming materials |
$23,000 |
|
Technical support provided to suppliers |
$71,000 |
|
Disposal of defective products |
$94,000 |
|
Quality data gathering, analysis, and reporting |
$47,000 |
|
Liability arising from defective products |
$75,000 |
|
Depreciation of test equipment |
$22,000 |
What would be the total external failure cost appearing on the quality cost report?
A) $426,000
B) $234,000
C) $106,000
D) $87,000