Question

Required information [The following information applies to the questions displayed below.) The Abrams Corporation incurred the following quality costs for the year ending December LE VA Inspections Training Quality planning Maintenance Rework Warranty Testing of Equipment Scrap Lost sales Dointime Repairs $ 34,400 $ 16,200 7,000 9,300 3,600 8,340 7,500 8,000 18,850 M 006 6,702 0. 00 What are the total prevention costs for the Abrams Corporation? Multiple Choice

Answer 1

Prevention cost	$             32,500
Appraisal Cost	$             41,900
Internal Failure Cost	$             21,500
External failure costs	$             33,890
Workings:
Abrams Corporations
Prevention cost
Training	$             16,200
Quality planning	$                7,000
Maintenance	$                9,300
Total	$             32,500
Appraisal Cost
Inspections	$             34,400
Testing of equipment	$                7,500
Total	$             41,900
Internal Failure Cost
Rework	$                3,600
Scrap	$                8,000
Downtime	$                9,900
Total	$             21,500
External failure costs
Warranty	$                8,340
Lost sales	$             18,850
Repairs	$                6,700
Total	$             33,890