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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 $46,800
Processing lost customer reservations 93,600
Rework incorrectly prepared room service meal 70,200
Employee training 23,400
Total $234,000

Sales are $1,800,000. Prepare a cost of quality report. Round percent of sales to one decimal place.

Cost of Quality Report
Quality Cost Quality Cost Percent of Cost Percent of
Classification Quality Cost Total Sales
$ % %
Prevention
Appraisal
Internal failure
External failure
Total

Respuesta :

Answer:

Cost of Quality Report

Quality Cost     Quality Cost Percent of Total       Percent of

Classification                                    Quality Cost              Total Sales

Prevention         $23,400               10.0%                   1.3%

Appraisal         $46,800               20.0%                  2.6%

Internal failure $70,200               30.0%                  3.9%

External failure $93,600               40.0%                  5.2%

Total                        $234,000            100.0%                  13.0%

percent of total sale = quality cost/$1,800,000

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