Question

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

Answer 1