GEM Company Has the Following Information Available Required:
Prepare the Quality Cost Report for the GEM Company

question 27

Essay

GEM Company has the following information available:
$\begin{array}{ll}\text { Quality engineering of products } & \$ 20,000 \\\text { Quality training of employees } & \$ 2,000 \\\text { Net cost of scrap } & \$ 30,000 \\\text { Rework labor } & \$ 4,500 \\\text { Warranty repairs } & \$ 100,000\\\text { Product recalls } & \$ 200,000 \\\text { Liability arising from defective products } & \$ 1,000,000 \\\text { Maintenance of test equipment } & \$ 44,000 \\\text { Quality improvement projects } & \$ 55,000\\\text { Setups for testing } & \$ 3,000 \\\text { Supplies used in testing } & \$ 5,500 \\\text { Downtime caused by defects } & \$ 70,000 \\\text { Disposal of defective products } & \$ 80,000\end{array}$
Required:
Prepare the quality cost report for the GEM Company.

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Definitions:

Occipital Lobe

The region of the brain located at the back of the head, responsible for processing visual information.

Corresponding Location

A place or position that matches or parallels another in context, characteristics, or role, often used in geographical and mathematical references.

Rods

Photoreceptor cells in the retina that are highly sensitive to light and enable vision in low-light conditions.

Cones

Photoreceptor cells in the retina of the eye, responsible for color vision and functioning best in bright light.