Question A quality control activity analysis indicated the following four activity costs of a manufacturing department: 1 Rework $43,680.00 2 Inspecting incoming raw materials 46,800.00 3 Warranty work 37,440.00 4 Process improvement effort 184,080.00 5 Total $312,000.00 Sales are $1,200,000. Prepare a cost of quality report. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Round percents to one decimal place

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter13: Lean Manufacturing And Activity Analysis
Section: Chapter Questions
Problem 4BE
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A quality control activity analysis indicated the following four activity costs of a manufacturing department:

1 Rework $43,680.00

2 Inspecting incoming raw materials 46,800.00

3 Warranty work 37,440.00

4 Process improvement effort 184,080.00

5 Total $312,000.00 Sales are $1,200,000.

Prepare a cost of quality report. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Round percents to one decimal place

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