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
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