Cost of Quality Report A quality control activity analysis indicated the following four activity costs of a hotel: Inspecting cleanliness of rooms $175,000 Processing lost customer reservations 40,000 Rework incorrectly prepared room service meal 20,000 Employee training 265,000 Total $500,000 Sales are $4,000,000. 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 $ % % Appraisal % % Internal failure % % External failure % % Total $ % %
Cost of Quality Report A quality control activity analysis indicated the following four activity costs of a hotel: Inspecting cleanliness of rooms $175,000 Processing lost customer reservations 40,000 Rework incorrectly prepared room service meal 20,000 Employee training 265,000 Total $500,000 Sales are $4,000,000. 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 $ % % Appraisal % % Internal failure % % External failure % % Total $ % %
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 | $175,000 |
| Processing lost customer reservations | 40,000 |
| Rework incorrectly prepared room service meal | 20,000 |
| Employee training | 265,000 |
| Total | $500,000 |
Sales are $4,000,000. 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 | $ | % | % |
| Appraisal | % | % | |
| Internal failure | % | % | |
| External failure | % | % | |
| Total | $ | % | % |
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