Charles Berkle is the manager of Nogain Manufacturing and is interested in doing a cost of quality a 1 answer below »

Charles Berkle is the manager of Nogain Manufacturing and is interested in doing a cost of quality analysis. The following cost and revenue data are available for the most recent year ended December 31:   Sales revenue $ 485,000   Cost of goods sold 272,000   Warranty expense 34,000   Inspection costs 12,000   Scrap and rework 10,600   Product returns due to defects 6,000   Depreciation expense 32,000   Machine maintenance expense 12,000   Wage expense 135,000   Machine breakdown costs 4,000   Estimated lost sales due to poor quality 11,000 a.

Classify each of the above costs into the four quality cost categories and prepare a cost of quality report for Nogain. Prevention Costs $ Appraisal Costs: $ Internal Failure Costs: $ External Failure Costs: Total Quality Costs

b. What percentage of sales revenue is being spent on prevention and appraisal activities? (Round your answer to 1 decimal place.) c.

What percentage of sales revenue is being spent on internal and external failure costs? (Round your answer to 1 decimal place.)

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