(Cost of quality) The following production information about quality costs has been gathered for June 2010:
|
Total defective units |
580 |
|
Number of units reworked |
380 |
|
Number of units returned |
100 |
|
Total prevention cost |
$24,000 |
|
Total appraisal cost |
$8,500 |
|
Per unit profit for defective units |
$20 |
|
Per unit profit for good units |
$56 |
|
Cost to rework defective units |
$16 |
|
Cost to handle returned units |
$10 |
Using these data, calculate the following:
a. Total cost to rework
b. Profit lost from not reworking all defective units
c. Cost of processing customer returns
d. Total failure costs
e. Total quality cost