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
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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
E. $566,000
Transcribed Image Text: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 E. $566,000
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