Hartlie Company's quality cost report is to be based on the following data:
|
Lost sales due to poor quality
|
$11,000
|
|
Rework labor and overhead
|
$75,000
|
|
Statistical process control activities
|
$26,000
|
|
Depreciation of test equipment
|
$16,000
|
|
Re-entering data because of keying errors
|
$86,000
|
|
Debugging software errors
|
$55,000
|
|
Quality data gathering, analysis, and reporting
|
$48,000
|
|
Supervision of testing and inspection activities
|
$12,000
|
|
Warranty repairs and replacements
|
$75,000
|
Required:
Prepare a Quality Cost Report in good form with separate sections for prevention costs, appraisal costs, internal failure costs, and external failure costs.