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Gaffney Company's quality cost report is to be based on the following data:
Final product testing and inspection
$60,000
Rework labor and overhead
Statistical process control activities
$78,000
Quality data gathering, analysis, and reporting
$24,000
Returns arising from quality problems
$77,000
Liability arising from defective products
$89,000
Depreciation of test equipment
$62,000
Downtime caused by quality problems
$80,000
Supervision of testing and inspection activities
$11,000
Required:
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