Question:
Fado Company"s quality cost report is to be based on the following data:
|
Net cost of scrap
|
$18,000
|
|
Quality circles
|
$84,000
|
|
Depreciation of test equipment
|
$32,000
|
|
Returns arising from quality problems
|
$59,000
|
|
Systems development
|
$45,000
|
|
Supplies used in testing and inspection
|
$68,000
|
|
Product recalls
|
$34,000
|
|
Disposal of defective products
|
$62,000
|
|
Debugging software errors
|
$56,000
|
What would be the total internal failure cost appearing on the quality cost report?
A) $121,000
B) $90,000
C) $124,000
D) $136,000