The manager at Rainbow International prepares a Cost of Quality report to report the following expenses: $6,400 Inspection of raw material costs Warranty costs warranty claims $220,000 $13,000 Cost to dispose of rejected products Train hourly manufacturing personnel Recall of batch #2894 $60,000 $190,000 Production losses due to machine malfunctions $26,000 Cost of defective products found at inspection audit $70,000 Inspecting products when halfway through the production process $31,000 Which of the following total cost is the total cost of quality in the external failure cost category? A. $6,400 B. $190,000 C. $220,000 D. $229,000 OE. $566,000

The manager at Rainbow International prepares a Cost of Quality report to report the following expenses: $6,400 Inspection of raw material costs Warranty costs warranty claims $220,000 $13,000 Cost to dispose of rejected products Train hourly manufacturing personnel Recall of batch #2894 $60,000 $190,000 Production losses due to machine malfunctions $26,000 Cost of defective products found at inspection audit $70,000 Inspecting products when halfway through the production process $31,000 Which of the following total cost is the total cost of quality in the external failure cost category? A. $6,400 B. $190,000 C. $220,000 D. $229,000 OE. $566,000

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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Schedule of Activity Costs Quality Control Activities Product testing Assessing vendor quality Recalls Rework Scrap disposal Product design Training machine operators Warranty work Process audits Activity Cost $55,000 26,000 18,000 29,000 8,000 30,000 46,000 12,000 22,000 From the provided schedule of activity costs, determine the internal failure costs.