Schedule of Activity Costs Quality Control Activities Activity Cost Process audits $50,000 Training of machine operators...

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Schedule of Activity Costs Quality Control Activities Activity Cost Process audits $50,000 Training of machine operators...

Schedule of Activity Costs
Quality Control Activities	Activity Cost
Process audits	$50,000
Training of machine operators	28,000
Processing returned products	19,000
Scrap processing (disposal)	25,000
Rework	8,000
Preventative maintenance	30,000
Product design	46,000
Warranty work	12,000
Finished goods inspection	23,000

From the above schedule of activity costs, determine the prevention costs.

a.$30,000

b.$74,000

c.$104,000

d.$76,000

business accounting

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Answer 1

Answer #1

Correct answer---------------(c) $104,000

Working

Product design	$ 46,000
Training of machine operators	$ 28,000
Preventative maintenance	$ 30,000
Total Preventive cost	$ 104,000

Costs that are incurred so that possibility of defects are reduced. The method of process is improved so that defects do not take place.

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Answer 2

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