Galant Company's Quality Cost Report Is to Be Based on the Following

question 64

Essay

Galant Company's quality cost report is to be based on the following data:

$\begin{array}{ll}\text { Downtime caused by quality problems } & \$ 11,000 \\\text { Rework labour and overhead } & \$ 32,000 \\\text { Quality circles } & \$ 44,000 \\\text { Returns arising from quality problems } & \$ 97,000 \\\text { Supervision of testing and inspection activities } & \$ 18,000 \\\text { Test and inspection of in-process goods } & \$ 90,000 \\\text { Systems development } & \$ 28,000 \\\text { Amortization of test equipment } & \$ 25,000 \\\text { Warranty repairs and replacements } & \$ 59,000\end{array}$

Required: Prepare a quality cost report in good form with separate sections for prevention costs,appraisal costs,internal failure costs,and external failure costs.

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Definitions:

Compressive Strength

Compressive strength is a measure of the ability of a material to withstand loads tending to reduce size, typically expressed in pounds per square inch (psi) or mega pascals (MPa).

Center Line

A reference line in a chart or graph that represents the average or median of the data points.

Compressive Strength

The capacity of a material or structure to withstand loads that tend to reduce size.

Injection Molding

A manufacturing process for producing parts by injecting molten material into a mold.