Lipps Company manufactures custom-designed medical equipment for paramedic units
ID: 2376520 • Letter: L
Question
Lipps Company manufactures custom-designed medical equipment for paramedic units. In May 2010, the company incurred the following costs of quality:Total quality costs of conformance for May were
product design costs $8,600
product recall costs 5,200
product simulation costs 13,500
product testing costs 3,500
product warranty claims 2,000
scrap and reqork costs 3,000
Total quality costs of conformance for May were
Explanation / Answer
It should be c) 25,600 since recall, rework n warranty does not come in the conformance cost.
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