Gaffney Company's quality cost report is to be based on the following data:
|
Final product testing and inspection
|
$60,000
|
|
Rework labor and overhead
|
$60,000
|
|
Statistical process control activities
|
$78,000
|
|
Quality data gathering, analysis, and reporting
|
$24,000
|
|
Returns arising from quality problems
|
$77,000
|
|
Liability arising from defective products
|
$89,000
|
|
Depreciation of test equipment
|
$62,000
|
|
Downtime caused by quality problems
|
$80,000
|
|
Supervision of testing and inspection activities
|
$11,000
|
Required:
Prepare a Quality Cost Report in good form with separate sections for prevention costs, appraisal costs, internal failure costs, and external failure costs.