A quality control activity analysis indicated the following four activity costs of a hotel. Verifying credit card information $40,000 Customer service training 20,000 Discounting room rates due to poor customer service 16,000 Correcting charges to customer invoices 8,000 Total $84,000   Sales are $750,000 for the year. Prepare a cost of quality report. Round your answers to one decimal place, if necessary. Due to rounding there may be difference of 0.1     Cost of Quality Report   Quality Cost Classification Quality Cost Percent of Total Quality Cost Percent of Total Sales Prevention $fill in the blank 1   fill in the blank 2 %     fill in the blank 3 %     Appraisal  fill in the blank 4   fill in the blank 5       fill in the blank 6       Internal failure  fill in the blank 7   fill in the blank 8       fill in the blank 9       External failure  fill in the blank 10   fill in the blank 11       fill in the blank 12           Totals $fill in the blank 13   fill in the blank 14 %     fill in the blank 15 %

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter4: Activity-based Costing
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Problem 7CE: Golding Bank provided the following data about its resources and activities for its checking account...
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A quality control activity analysis indicated the following four activity costs of a hotel.

Verifying credit card information $40,000
Customer service training 20,000
Discounting room rates due to poor customer service 16,000
Correcting charges to customer invoices 8,000
Total $84,000

 

Sales are $750,000 for the year. Prepare a cost of quality report. Round your answers to one decimal place, if necessary.

Due to rounding there may be difference of 0.1

    Cost of Quality Report  
Quality Cost
Classification
Quality Cost Percent of Total
Quality Cost
Percent of
Total Sales
Prevention $fill in the blank 1   fill in the blank 2 %     fill in the blank 3 %    
Appraisal  fill in the blank 4   fill in the blank 5       fill in the blank 6      
Internal failure  fill in the blank 7   fill in the blank 8       fill in the blank 9      
External failure  fill in the blank 10   fill in the blank 11       fill in the blank 12      
    Totals $fill in the blank 13   fill in the blank 14 %     fill in the blank 15 %    
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