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Water Industries\' quality control report for August contains the following item

ID: 2510385 • Letter: W

Question

Water Industries' quality control report for August contains the following items.

Gathering, analysis, and reporting quality data $ 1,350

Inspecting raw materials received from vendors 2,350

Testing and inspecting finished products 3,350

Visiting customer sites to test product 4,350

Designing product to reduce production problems 5,350

Repairing and/or replacing products under warranty 6,350

Maintaining the equipment used to gather quality data 7,350

Cost (net) of materials wasted during production 8,350

What would be the total of the conformance costs on the August quality control report for Water Industries?

$15,700.

$24,100.

$21,750.

$13,700.

Explanation / Answer

Solution: 24,100

Working:

prevention costs = 2350 + 5350 = 7700

appraisal costs = 1350 + 3350 +4350 + 7350 = 16,400

conformance costs= 7700 + 16400 = 24,100