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Wally Company makes dog beds. Last year Wally incurred the following costs related to quality control. What is Wally Company's cost of quality for internal failures? 1. Repairs for dog beds under warranty 2,127 2. Seamstress training 822 3. Wages of part-time inspector of products 1,314 4. Cost of replacements given to customers for defective dog beds 1,460 5. Product liability insurance 3,931 6. Inspection of sewing machines as part of routine maintenance 3,295 7. Inspection of fabric and thread for defects 1,661 8. Repairing defective dog beds prior to sale 1,651

Respuesta :

Answer: $1,651

Explanation:

The only cost for Internal failure is Repairing the dog beds prior to sale which is $1,651.

The other costs are classified as;

  1. Repairs for dog beds under warranty - External failure cost
  2. Seamstress training. - Prevention cost
  3. Wages of part-time inspector of products - Appraisal cost
  4. Cost of replacements given to customers for defective dog beds - External failure cost
  5. Product liability insurance - External failure cost
  6. Inspection of sewing machines as part of routine maintenance -Appraisal cost
  7. Inspection of fabric and thread for defects - Appraisal cost

Wally Company's cost of quality for internal failures is $1,651

Calculation of the cost of quality for internal failure:

= repairing defective dog

= $1,651

We know that

Repairs for dog beds under warranty - External failure cost

Seamstress training. - Prevention cost

Wages of part-time inspector of products - Appraisal cost

Cost of replacements given to customers for defective dog beds - External failure cost

Product liability insurance - External failure cost

Inspection of sewing machines as part of routine maintenance -Appraisal cost

Inspection of fabric and thread for defects - Appraisal cost

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