Julia president of roo inc has been concerned about the

Reference no: EM13573053

Julia, president of Roo Inc. has been concerned about the growth in costs over the last several years. Julia asked the controller to perform an activity analysis to gain a better insight into these costs. The activity analysis revealed the following:

Activity Activity Cost

Correcting invoice errors (invoices have been printed-not mailed) $15,000

Disposing of scrap 39,000

Shipping late production with Federal Express (at company's cost) 33,000

Final inspection 20,000

Inspecting work in process 30,000

Preventative machine maintenance 18,000

Responding to customer quality complaints 15,000

Total $170,000

Using this information prepare a cost of quality report. Assume sales for the period were $700,000.

Quality Cost Classification	Quality Cost	Percent of Total quality cost	Percent of total Sales




Total

Given your results in the report above, what would you suggest to Julia as a top priority? Why?

Reference no: EM13573053

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