- What Will Be the Total Internal Failure Cost Appearing

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

A) $71,000.
B) $74,000.
C) $132,000.
D) $163,000.