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Jo Company makes and sells consumer products. During the p

7. Jo Company makes and sells consumer products. During the past year, Jo incurred the following costs: product recalls, $3,500; systems development, $120; inspection, $1,700; Net cost of scrap, $800; testing supplies, $30; warranty repairs, $3,300; rework labor, $1,400; statistical process control, $0; customer returns of defective products, $3,200; cost of testing equipment, $270; quality engineering, $1,080; and downtime due to quality problems, $600. What is the total amount of (1) prevention, (2) appraisal costs, (3) internal failure, and (4) external failure costs

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Appraisal:
Inspection: 1,700
Testing Supplies: 30
Cost of testing ...

Solution Summary

Jo Company makes and sells consumer products. During the past year, Jo incurred the following costs: product recalls, $3,500; systems development, $120; inspection, $1,700; Net cost of scrap, $800; testing supplies, $30; warranty repairs, $3,300; rework labor, $1,400; statistical process control, $0; customer returns of defective products, $3,200; cost of testing equipment, $270; quality engineering, $1,080; and downtime due to quality problems, $600. What is the total amount of (1) prevention, (2) appraisal costs, (3) internal failure, and (4) external failure costs

$2.19