Reference no: EM131928282

Problem - The expected sales for Johnson Company is $50 million for the current year. A quality improvement program is recently implemented by the management. Following data is accumulated alter several months:

Warranty claims - $60,000

Rework costs - 200,000

Quality training - 305,000

Inspection of incoming materials - 900,000

Statistical process control - 400,000

Scrap costs - 100,000

Product quality audits - 250,000

Requirements:

A. Calculate total prevention costs.

B. Calculate total appraisal costs.

C. Calculate total internal failure costs.

D. Calculate total external failure costs.