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The Farber Company Recorded the Following Costs of Quality During

Question 51

Multiple Choice

The Farber Company recorded the following costs of quality during the current period:  Downtinne $1,500 Inspection 1,000 Product desipn 4,000 Reliability testing upon completion of production 2,500 Restocking and packaging 1,500 Training 3,000 Warranty repairs ard replacernents 2,500 Total Costs of Quality $16,000\begin{array} { l r } \text { Downtinne } & \$ 1,500 \\\text { Inspection } & 1,000 \\\text { Product desipn } & 4,000 \\\text { Reliability testing upon completion of production } & 2,500 \\\text { Restocking and packaging } & 1,500 \\\text { Training } & 3,000 \\\text { Warranty repairs ard replacernents } & \underline{2,500} \\\text { Total Costs of Quality } & \underline{ \$ 16,000} \\\end{array} Which choice below represents the correct amount of prevention and appraisal costs?
 Prevention  Appraisal \begin{array} { l l l l } & \text { Prevention } & \text { Appraisal } \\\end{array}
A. $4,000$1,000\begin{array} { l l l l } & \$ 4,000 & & \$ 1,000 \\\end{array}
B. $3,000$1,000\begin{array} { l l l l } & \$ 3,000 & & \$ 1,000 \\\end{array}
C. $7,000$3,500\begin{array} { l l l l } & \$ 7,000 & & \$ 3,500 \\\end{array}
D. $3,000$2,500\begin{array} { l l l l } & \$ 3,000 & & \$ 2,500\end{array}


A) Choice A
B) Choice B
C) Choice C
D) Choice D

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