Reference no: EM132610271
Eade Company's quality cost report is to be based on the following data:
Systems development $32,000
Final product testing and inspection $13,000
Quality data gathering, analysis, and reporting $11,000
Net cost of scrap $62,000
Returns arising from quality problems $59,000
Amortization of test equipment $57,000
Rework labour and overhead $18,000
Test and inspection of incoming materials $40,000
Product recalls $36,000
Problem 1: What will be the total prevention cost appearing on the quality cost report?
A) $45,000.
B) $43,000.
C) $47,000.
D) $51,000.
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