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Galben Company's Quality Cost Report Is to Be Based on the Following

Question 181

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Galben Company's quality cost report is to be based on the following data:
 Quality data gathering, analysis, and reporting $38,000 Supervision of testing and inspection activities $45,000 Liability arising from defective products $30,000 Technical support provided to suppliers $39,000 Disposal of defective products $72,000 Amortization of test equipment $55,000 Downtime caused by quality problems $96,000 Test and inspection of in-process goods $69,000 Cost of field servicing and handling complaints $52,000\begin{array}{|l|r|}\hline \text { Quality data gathering, analysis, and reporting } & \$ 38,000 \\\hline \text { Supervision of testing and inspection activities } & \$ 45,000 \\\hline \text { Liability arising from defective products } & \$ 30,000 \\\hline \text { Technical support provided to suppliers } & \$ 39,000 \\\hline \text { Disposal of defective products } & \$ 72,000 \\\hline \text { Amortization of test equipment } & \$ 55,000 \\\hline \text { Downtime caused by quality problems } & \$ 96,000 \\\hline \text { Test and inspection of in-process goods } & \$ 69,000 \\\hline \text { Cost of field servicing and handling complaints } & \$ 52,000 \\\hline\end{array} Required:
Prepare a quality cost report in good form with separate sections for prevention costs,appraisal costs,internal failure costs,and external failure costs.

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