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This posting calculates Sam's Surf Shop appraisal costs.

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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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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.

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

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