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Schedule of Activity Costs Quallty Control Activities Activity Cost Process audits $48,900 Training of machine operators 26,3
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Answer : b $ 26400

External failure cost = Processing of returned products + Warranty work

= $19500+ $ 6900

=$26400

External Failure cost is cost which is incurred after the sales product failure and it includes the warranty, replacement , liablity , lost of sales and damage of reputaion.

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