The following production information about quality costs has been gathered for June 2010:
Total defective units …………………………… 580
Number of units reworked …………………….. 380
Number of units returned ……………………… 100
Total prevention cost …………………………..$24,000
Total appraisal cost …………………………… $8,500
Per-unit profit for defective units …………….. $20
Per-unit profit for good units …………………. $56
Cost to rework defective units ………………… $16
Cost to handle returned units …………………. $10
Using these data, calculate the following:
a. Total cost to rework
b. Profit lost from not reworking all defective units
c. Cost of processing customer returns
d. Total failure costs
e. Total quality cost
The following production information about quality costs has bee 1 answer below »
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