Reference no: EM132610280

Fabri Company's quality cost report is to be based on the following data:

Liability arising from defective products $56,000

Lost sales due to poor quality $51,000

Test and inspection of in-process goods $47,000

Quality circles $17,000

Net cost of spoilage $93,000

Debugging software errors $29,000

Rework labour and overhead $95,000

Final product testing and inspection $32,000

Statistical process control activities $61,000

Problem 1: What will be the total external failure cost appearing on the quality cost report?

A) $481,000.

B) $324,000.

C) $107,000.

D) $80,000.