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This posting calculates Sam's Surf Shop appraisal costs.

The following table lists all costs of quality incurred by Sam's Surf Shop last year. What was Sam's appraisal cost for quality last year?

Annual inspection costs $ 155,000
Annual cost of scrap materials $ 286,000
Annual rework cost $ 34,679
Annual cost of quality training $ 456,000
Annual warranty cost $1,546,000
Annual testing cost $ 543,000

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The appraisal cost for quality would include annual inspection costs ...

Solution Summary

The solution provides a breakdown of the calculation needed to determine the total appraisal costs for quality last year at Sam's Surf Shop.