Question

Cost of Quality Report A quality control activity analysis indicated the following four activity costs of a hotel: Inspecting cleanliness of rooms $175,000 Processing lost customer reservations 40,000 Rework incorrectly prepared room service meal 20,000 Employee training 265,000 Total $500,000 Sales are $4,000,000. Prepare a cost of quality report. Round percent of sales to one decimal place. Cost of Quality Report Quality Cost Classification Quality Cost Percent of Total Quality Cost Percent of Total Sales Prevention $fill in the blank 1 fill in the blank 2 % fill in the blank 3 % Appraisal fill in the blank 4 fill in the blank 5 % fill in the blank 6 % Internal failure fill in the blank 7 fill in the blank 8 % fill in the blank 9 % External failure fill in the blank 10 fill in the blank 11 % fill in the blank 12 % Totals $fill in the blank 13 fill in the blank 14 % fill in the blank 15 %

Answer 1

Answer: Check attachment

Explanation:

Quality cost:

Prevention $265000

Appraisal $175000

Internal failure $20000

External failure $40000

Total $500000

Percent of total quality was calculated as:

Quality cost classification/Total

e.g. Prevention = 265000/500000 × 100 = 53.00%

Check attachment for further information.