Question

Fabrick Company's quality cost report is to be based on the following data: Lost sales due...

Fabrick Company's quality cost report is to be based on the following data:

Lost sales due to poor quality $ 13,000
Quality data gathering, analysis, and reporting $ 62,000
Net cost of spoilage $ 59,000
Re-entering data because of keying errors $ 18,000
Test and inspection of in-process goods $ 11,000
Final product testing and inspection $ 40,000
Statistical process control activities $ 36,000
Returns arising from quality problems $ 32,000
Downtime caused by quality problems $ 57,000

What would be the total internal failure cost appearing on the quality cost report? PICK ONE

  • $134,000

  • $81,000

  • $89,000

  • $31,000

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