Cost of Quality ReportA quality control activity analysis indicated the following four activity costs of a hotel:Inspecting cleanliness of rooms$167,400Processing lost customer reservations55,800Rework incorrectly prepared room service meal223,200Employee training111,600Total$558,000Sales are $3,100,000. Prepare a cost of quality report. Round percent of sales to one decimal place. Cost of Quality Report Quality CostClassificationQuality CostPercent of TotalQuality CostPercent ofTotal SalesPrevention$fill in the blank 1fill in the blank 2%fill in the blank 3%Appraisalfill in the blank 4fill in the blank 5%fill in the blank 6%Internal failurefill in the blank 7fill in the blank 8%fill in the blank 9%External failurefill in the blank 10fill in the blank 11%fill in the blank 12%Total$fill in the blank 13fill in the blank 14%fill in the blank 15%

Percent of Total Quality Cost = Quality Cost / Total Quality Cost Percent of Total Sales = Quality Cost / Total salesCost of Quality Report Quality CostClassification Quality Cost Percent of TotalQuality Cost Percent ofTotal Sales Prevention $111,600 20.00% 3.60% Appraisal 167,400 30.00% 5.40% Internal failure 223,200 40.00% 7.20% External failure 55,800 10.00% 1.80% Total $558,000 100.00% 18.00%

Answered: A quality control activity analysis…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Cost of Quality Report

A quality control activity analysis indicated the following four activity costs of a hotel:

Inspecting cleanliness of rooms	$167,400
Processing lost customer reservations	55,800
Rework incorrectly prepared room service meal	223,200
Employee training	111,600
Total	$558,000

Sales are $3,100,000. Prepare a cost of quality report. Round percent of sales to one decimal place.


Cost of Quality Report

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%
Total	$fill in the blank 13	fill in the blank 14%	fill in the blank 15%

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