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Calculate the ratio of the prevention

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Question - The following represents the financial information for Domingo Corporation for two months.

 

March

April

Sales revenue

$540,000

$450,000

Costs

 

 

Process inspection

$1,650

$1,920

Scrap

1,890

1,920

Quality training

19,500

13,700

Warranty repairs

4,200

4,900

Product testing equipment

7,300

6,700

Customer complaints

2,600

3,800

Rework

17,000

18,000

Preventive maintenance

15,200

8,700

Materials inspection

6,000

4,900

Field testing

9,900

12,100

Required -

a. Classify these items into Prevention, Appraisal, Internal failure, or External failure costs.

b. Calculate the ratio of the prevention, appraisal, internal failure, and external failure costs to sales for March and April.

Reference no: EM133073748

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