FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:Fabrick Company's quality cost report is to be based on the following data:
Lost sales due to poor quality
Quality data gathering, analysis, and reporting
Net cost of spoilage
Re-entering data because of keying errors
Test and inspection of in-process goods
Final product testing and inspection
Statistical process control activities
Returns arising from quality problems
Downtime caused by quality problems
What would be the total external failure cost appearing on the quality cost report?
$ 15,600
$ 66,900
$ 59,500
$ 26,100
$ 15,800
$ 40,000
$ 40,600
$ 39,400
$ 63,800
Transcribed Image Text:Multiple Choice
O
$55,000
$367,700
$79,400
$204,400
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