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- What Will Be the Total External Failure Cost Appearing

question 30

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 Faust Company’s quality cost report is to be based on the following data:  Quality engineering $68,000 Quality circles $35,000 Supervision of testing and inspection activities $72,000 Net cost of scrap $76,000 Test and inspection of in-process goods $6,000 Liability arising from defective products $3,000 Warranty repairs and replacements $56,000 Debugging software errors $68,000 Rework labour and overhead $19,000\begin{array}{l}\text { Faust Company's quality cost report is to be based on the following data: }\\\begin{array} { | l | r | } \hline \text { Quality engineering } & \$ 68,000 \\\hline \text { Quality circles } & \$ 35,000 \\\hline \text { Supervision of testing and inspection activities } & \$ 72,000 \\\hline \text { Net cost of scrap } & \$ 76,000 \\\hline \text { Test and inspection of in-process goods } & \$ 6,000 \\\hline \text { Liability arising from defective products } & \$ 3,000 \\\hline \text { Warranty repairs and replacements } & \$ 56,000 \\\hline \text { Debugging software errors } & \$ 68,000 \\\hline \text { Rework labour and overhead } & \$ 19,000 \\\hline\end{array}\end{array}
- What will be the total external failure cost appearing on the quality cost report?


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