Hartness Company”s quality cost report is to be based on the following data:
|
Depreciation of test equipment |
$75,000 |
|
Rework labor and overhead |
$11,000 |
|
Quality circles |
$46,000 |
|
Quality training |
$94,000 |
|
Test and inspection of incoming materials |
$64,000 |
|
Product recalls |
$71,000 |
|
Net cost of scrap |
$12,000 |
|
Re-entering data because of keying errors |
$52,000 |
|
Cost of field servicing and handling complaints |
$25,000 |
Required:
Prepare a Quality Cost Report in good form with separate sections for prevention costs, appraisal costs, internal failure costs, and external failure costs.