Cost of Quality ReportA quality control activity analysis indicated the following four activity costs of a hotel:Inspecting cleanliness of rooms$97,200Processing lost customer reservations48,600Rework incorrectly prepared room service meal291,600Employee training48,600Total$486,000Sales are $2,700,000. Prepare a cost of quality report. Round percent of sales to one decimal place.

Cost of quality report: Cost of quality report is a report which shows the costs involved in…

Answered: Prepare a cost of quality report.

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	$97,200
Processing lost customer reservations	48,600
Rework incorrectly prepared room service meal	291,600
Employee training	48,600
Total	$486,000

Sales are $2,700,000. Prepare a cost of quality report. Round percent of sales to one decimal place.

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