Question:
Fadden Company"s quality cost report is to be based on the following data:
|
Statistical process control activities
|
$97,000
|
|
Depreciation of test equipment
|
$87,000
|
|
Supplies used in testing and inspection
|
$48,000
|
|
Re-entering data because of keying errors
|
$12,000
|
|
Debugging software errors
|
73,000
|
|
Quality circles
|
$84,000
|
|
Net cost of spoilage
|
$85,000
|
|
Returns arising from quality problems
|
$28,000
|
|
Cost of field servicing and handling complaints
|
$65,000
|
What would be the total internal failure cost appearing on the quality cost report?
A) $150,000
B) $170,000
C) $101,000
D) $133,000