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- What Will Be the Total External Failure Cost Appearing

question 163

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 Eade Company’s quality cost report is to be based on the following data:  Systems development $32,000 Final product testing and inspection $13,000 Quality data gathering, analysis, and reporting $11,000 Net cost of scrap $62,000 Returns arising from quality problems $59,000 Amortization of test equipment $57,000 Rework labour and overhead $18,000 Test and inspection of incoming materials $40,000 Product recalls $36,000\begin{array}{l}\text { Eade Company's quality cost report is to be based on the following data: }\\\begin{array} { | l | r | } \hline \text { Systems development } & \$ 32,000 \\\hline \text { Final product testing and inspection } & \$ 13,000 \\\hline \text { Quality data gathering, analysis, and reporting } & \$ 11,000 \\\hline \text { Net cost of scrap } & \$ 62,000 \\\hline \text { Returns arising from quality problems } & \$ 59,000 \\\hline \text { Amortization of test equipment } & \$ 57,000 \\\hline \text { Rework labour and overhead } & \$ 18,000 \\\hline \text { Test and inspection of incoming materials } & \$ 40,000 \\\hline \text { Product recalls } & \$ 36,000 \\\hline\end{array}\end{array}
- What will be the total external failure cost appearing on the quality cost report?

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