Factoria Company”s quality cost report is to be based on the following data:
|
Disposal of defective products |
$41,000 |
|
Statistical process control activities |
$29,000 |
|
Test and inspection of in-process goods |
$65,000 |
|
Net cost of spoilage |
$23,000 |
|
Test and inspection of incoming materials |
$22,000 |
|
Warranty repairs and replacements |
$14,000 |
|
Downtime caused by quality problems |
$56,000 |
|
Quality training |
$42,000 |
|
Product recalls |
$32,000 |
What would be the total prevention cost appearing on the quality cost report?
A) $71,000
B) $51,000
C) $107,000
D) $43,000