FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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 $56,000
Processing lost customer reservations 28,000
Rework incorrectly prepared room service meal 84,000
Employee training 112,000
Total $280,000

Sales are $1,400,000. Prepare a cost of quality report. Round percent of sales to one decimal place.

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

?

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