Calculate the total cost of Appraisal activities. Design Reviews                                                                   $275,000 Finished goods returned due to failure                               $55,000 Freight on replacement finished goods                               $27,000 Labor for inspection during manufacturing                         $75,000 Labor for inspection of raw materials                                  $32,000 Product Testing – Labor                                                        $63,000 Rework -labor and overhead                                              $150,000 Materials for Warranty repairs                                              $68,000 Process Engineering                                                            $180,000 Product Liability Claims                                                      $145,000 Product Testing – Equipment                                               $35,000 Equipment Repairs due to breakdown                                $22,000 Equipment – Scheduled Maintenance                                $90,000 Training of Manufacturing Employees                              $156,000

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter14: Quality And Environmental Cost Management
Section: Chapter Questions
Problem 4CE: Nabors Company had actual quality costs for the year ended June 30, 20x5, as given below. At the...
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Calculate the total cost of Appraisal activities.

Design Reviews                                                                   $275,000

Finished goods returned due to failure                               $55,000

Freight on replacement finished goods                               $27,000

Labor for inspection during manufacturing                         $75,000

Labor for inspection of raw materials                                  $32,000

Product Testing – Labor                                                        $63,000

Rework -labor and overhead                                              $150,000

Materials for Warranty repairs                                              $68,000

Process Engineering                                                            $180,000

Product Liability Claims                                                      $145,000

Product Testing – Equipment                                               $35,000

Equipment Repairs due to breakdown                                $22,000

Equipment – Scheduled Maintenance                                $90,000

Training of Manufacturing Employees                              $156,000

 
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