Fado Company”s quality cost report is to be based on the following data:
|
Net cost of scrap |
$18,000 |
|
Quality circles |
$84,000 |
|
Depreciation of test equipment |
$32,000 |
|
Returns arising from quality problems |
$59,000 |
|
Systems development |
$45,000 |
|
Supplies used in testing and inspection |
$68,000 |
|
Product recalls |
$34,000 |
|
Disposal of defective products |
$62,000 |
|
Debugging software errors |
$56,000 |
What would be the total external failure cost appearing on the quality cost report?
A) $458,000
B) $96,000
C) $93,000
D) $229,000