237. CSO: 1C5h LOS: 1C5m
Leese Inc. has the following quality financial data for its most recent fiscal year.
Rework costs $110,000
Warranty repair costs 280,000
Product line inspection 95,000
Design engineering 300,000
Supplier evaluation 240,000
Labor training 150,000
Product testing 65,000
Breakdown maintenance 70,000
Product scrap 195,000
Cost of returned goods 180,000
Customer support 35,000
Product liability claims 80,000
The total amount of prevention costs that should be reported in a Cost of Quality report
for the year is
a. $390,000.
b. $450,000.
c. $690,000.
d. $755,000.
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