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Gagnon Company's quality cost report is to be based on the following data:
Maintenance of test equipment
$18,000
Test and inspection of incoming materials
$73,000
Systems development
$29,000
Product recalls
$91,000
Quality training
$25,000
Disposal of defective products
$55,000
Supervision of testing and inspection activities
$24,000
Warranty repairs and replacements
$58,000
Net cost of scrap
$23,000
Required:
Prepare a Quality Cost Report in good form with separate sections for prevention costs, appraisal costs, internal failure costs, and external failure costs.
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