Earll Company's quality cost report is to be based on the following data:

-What would be the total internal failure cost appearing on the quality cost report?
A) $127,000
B) $26,000
C) $84,000
D) $150,000

Question

Earll Company's quality cost report is to be based on the following data:

-What would be the total internal failure cost appearing on the quality cost report?
A) $127,000 
B) $26,000 
C) $84,000 
D) $150,000

Quizplus · Accepted Answer

The total internal failure cost includes the cost of scrap ($35,000), rework ($36,000), and downtime ($13,000), which adds up to $84,000.

Earll Company's Quality Cost Report Is to Be Based on the Following