Question

7.

Schedule of Activity Costs

Quality Control Activities	Activity Cost
Process audits	$49,800
Training of machine operators	28,400
Processing returned products	16,900
Scrap processing (disposal)	25,600
Rework	5,600
Preventative maintenance	31,800
Product design	43,900
Warranty work	6,400
Finished goods inspection	22,800

From the above schedule of activity costs, determine the prevention costs.

a.$60,200

b.$109,700

c.$104,100

d.$121,000

Answer 1

The right answer is a- 60,200

Quality Control Activities	Activity Cost
Training of machine operators	28,400.00
Preventative maintenance	31,800.00
Total	60,200.00

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