Hartness Company's quality cost report is to be based on the following data:
|
Depreciation of test equipment
|
$75,000
|
|
Rework labor and overhead
|
$11,000
|
|
Quality circles
|
$46,000
|
|
Quality training
|
$94,000
|
|
Test and inspection of incoming materials
|
$64,000
|
|
Product recalls
|
$71,000
|
|
Net cost of scrap
|
$12,000
|
|
Re-entering data because of keying errors
|
$52,000
|
|
Cost of field servicing and handling complaints
|
$25,000
|
Required:
Prepare a Quality Cost Report in good form with separate sections for prevention costs, appraisal costs, internal failure costs, and external failure costs.