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Element Cost Classification

Given the following cost elements, determine the total percentage in each of the four major quality cost categories. Please show each cost element's cost classification.

Cost Element Amount ($)
Incoming test and inspection 7,500
Scrap 35,000
Quality Training 0
Inspection 25,000
Test 5,000
Adjustment cost of complaints 21,250
Quality Audits 2,500
Maintenance of tools & dies 9,200
Quality control administration 5,000
Laboratory testing 1,250
Design of Q. A. equipment 1,250
Material testing and inspection 1,250
Rework 70,000
Quality problem solving by product engineers 11,250
Inspection equipment calibration 2,500
Writing procedures and instructions 2,500
Laboratory services 2,500
Rework due to vendor faults 17,500
Correcting imperfections 6,250
Setup for test and inspection 10,750
Formal complaints to vendors 10,000

Solution Summary

This solution shows step-by-step calculations to determine the total percentage in the quality cost categories in an Excel file.