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Hartlie Company's quality cost report is to be based on the following data:
Lost sales due to poor quality
$11,000
Rework labor and overhead
$75,000
Statistical process control activities
$26,000
Depreciation of test equipment
$16,000
Re-entering data because of keying errors
$86,000
Debugging software errors
$55,000
Quality data gathering, analysis, and reporting
$48,000
Supervision of testing and inspection activities
$12,000
Warranty repairs and replacements
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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