Answer:
Rework-Internal Failure Cost $37,440
Inspecting incoming raw materials-Prevention $172,800
Warranty work-External Failure Cost $25,920
Process Improvement effort-Appraisal $51,840
Total activity cost $288,000
Explanation:
Calculation to recreate the quality activity analysis
QUALITY ACTIVITY ANALYSIS
Quality Cost classification Activity Cost
Rework-Internal Failure Cost $37,440
($288,000*13%)
Inspecting incoming raw materials-Prevention $172,800 ($288,000*60%)
Warranty work-External Failure Cost $25,920 ($288,000*9%)
Process Improvement effort-Appraisal $51,840 ($288,000*18%)
Total activity cost $288,000
($37,440+$172,800+$25,920+$51,840)
Therefore the quality activity analysis recreation are :
Rework-Internal Failure Cost $37,440
Inspecting incoming raw materials-Prevention $172,800
Warranty work-External Failure Cost $25,920
Process Improvement effort-Appraisal $51,840
Total activity cost $288,000
