Cost of Quality Report A quality control activity analysis indicated the following four activity costs of a hotel: Inspecting cleanliness of rooms $90,000 Processing lost customer reservations 30,000 Rework incorrectly prepared room service meal 120,000 Employee training 60,000 Total $300,000 Sales are $2,500,000. Prepare a cost of quality report. Round percent of sales to one decimal place. Cost of Quality Report Quality Cost Percent of Quality Cost Classification Total Sales Prevention % Appraisal Internal failure P External failure Total Percent of Total Quality Cost 19% P% %
Cost of Quality Report A quality control activity analysis indicated the following four activity costs of a hotel: Inspecting cleanliness of rooms $90,000 Processing lost customer reservations 30,000 Rework incorrectly prepared room service meal 120,000 Employee training 60,000 Total $300,000 Sales are $2,500,000. Prepare a cost of quality report. Round percent of sales to one decimal place. Cost of Quality Report Quality Cost Percent of Quality Cost Classification Total Sales Prevention % Appraisal Internal failure P External failure Total Percent of Total Quality Cost 19% P% %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Cost of Quality Report
A quality control activity analysis indicated the following four activity costs of a hotel:
$90,000
Inspecting cleanliness of rooms
Processing lost customer reservations
30,000
Rework incorrectly prepared room service meal
120,000
Employee training
60,000
Total
$300,000
Sales are $2,500,000. Prepare a cost of quality report. Round percent of sales to one decimal place.
Cost of Quality Report
Percent of
Quality Cost
Classification
Quality Cost
Total Sales
Prevention
%
Appraisal
%
Internal failure
%
External failure
%
Total
%%
K
Percent of Total
Quality Cost
%
%
P
P
%%
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