A quality control activity analysis indicated the following four activity costs of a hotel. Line Item Description Amount Verifying credit card information $40,000 Customer service training 20,000 Discounting room rates due to poor customer service 16,000 Correcting charges to customer invoices 8,000 Total $84,000 Sales are $750,000 for the year. Prepare a cost of quality report. Round your answers to one decimal place, if necessary. Due to rounding there may be difference of 0.1 Quality Cost Classification Quality Cost Percent of Total Quality Cost Percent of Total Sales Prevention $fill in the blank 1 fill in the blank 2% fill in the blank 3% Appraisal fill in the blank 4 fill in the blank 5% fill in the blank 6% Internal failure fill in the blank 7 fill in the blank 8% fill in the blank 9% External failure fill in the blank 10 fill in the blank 11% fill in the blank 12% Totals $fill in the blank 13 fill in the blank 14% fill in the blank 15% Feedback Area
A quality control activity analysis indicated the following four activity costs of a hotel. Line Item Description Amount Verifying credit card information $40,000 Customer service training 20,000 Discounting room rates due to poor customer service 16,000 Correcting charges to customer invoices 8,000 Total $84,000 Sales are $750,000 for the year. Prepare a cost of quality report. Round your answers to one decimal place, if necessary. Due to rounding there may be difference of 0.1 Quality Cost Classification Quality Cost Percent of Total Quality Cost Percent of Total Sales Prevention $fill in the blank 1 fill in the blank 2% fill in the blank 3% Appraisal fill in the blank 4 fill in the blank 5% fill in the blank 6% Internal failure fill in the blank 7 fill in the blank 8% fill in the blank 9% External failure fill in the blank 10 fill in the blank 11% fill in the blank 12% Totals $fill in the blank 13 fill in the blank 14% fill in the blank 15% Feedback Area
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A quality control activity analysis indicated the following four activity costs of a hotel.
| Line Item Description | Amount |
|---|---|
| Verifying credit card information | $40,000 |
| Customer service training | 20,000 |
| Discounting room rates due to poor customer service | 16,000 |
| Correcting charges to customer invoices | 8,000 |
| Total | $84,000 |
Sales are $750,000 for the year. Prepare a cost of quality report. Round your answers to one decimal place, if necessary.
Due to rounding there may be difference of 0.1
| Quality Cost Classification |
Quality Cost |
Percent of Total Quality Cost |
Percent of Total Sales |
|---|---|---|---|
| Prevention | $fill in the blank 1 | fill in the blank 2% | fill in the blank 3% |
| Appraisal | fill in the blank 4 | fill in the blank 5% | fill in the blank 6% |
| Internal failure | fill in the blank 7 | fill in the blank 8% | fill in the blank 9% |
| External failure | fill in the blank 10 | fill in the blank 11% | fill in the blank 12% |
| Totals | $fill in the blank 13 | fill in the blank 14% | fill in the blank 15% |
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