Fadden Company”s quality cost report is to be based on the following data:
|
Statistical process control activities |
$97,000 |
|
Depreciation of test equipment |
$87,000 |
|
Supplies used in testing and inspection |
$48,000 |
|
Re-entering data because of keying errors |
$12,000 |
|
Debugging software errors |
73,000 |
|
Quality circles |
$84,000 |
|
Net cost of spoilage |
$85,000 |
|
Returns arising from quality problems |
$28,000 |
|
Cost of field servicing and handling complaints |
$65,000 |
What would be the total prevention cost appearing on the quality cost report?
A) $184,000
B) $125,000
C) $132,000
D) $181,000