The following production information about quality costs has bee 1 answer below »

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

 

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