Prepare a cost of quality report.

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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Cost of Quality Report

A quality control activity analysis indicated the following four activity costs of a hotel:

Inspecting cleanliness of rooms $97,200
Processing lost customer reservations 48,600
Rework incorrectly prepared room service meal 291,600
Employee training 48,600
Total $486,000

Sales are $2,700,000. Prepare a cost of quality report. Round percent of sales to one decimal place.

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