Eagleson Company's quality cost report is to be based on the following data: Net cost of scrap Liability arising from defective products Warranty repairs and replacements Re-entering data because of keying errors Supplies used in testing and inspection Quality data gathering, analysis, and reporting Final product testing and inspection Test and inspection of in-process goods Systems development $ 75,000 $ 32,000 $ 80,000 $ 75,000 $ 18,000 $ 62,000 $ 21,000 $ 44,000 $ 45,000 What would be the total prevention cost appearing on the quality cost report?

Eagleson Company's quality cost report is to be based on the following data: Net cost of scrap Liability arising from defective products Warranty repairs and replacements Re-entering data because of keying errors Supplies used in testing and inspection Quality data gathering, analysis, and reporting Final product testing and inspection Test and inspection of in-process goods Systems development $ 75,000 $ 32,000 $ 80,000 $ 75,000 $ 18,000 $ 62,000 $ 21,000 $ 44,000 $ 45,000 What would be the total prevention cost appearing on the quality cost report?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter14: Quality And Environmental Cost Management

Section: Chapter Questions

Problem 27E: Using the Taguchi quality loss function, an average loss of 20 per unit is calculated. During the...

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