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Question

Accounting

59

Schedule of Activity Costs

Quality Control Activities Activity Cost
Process audits $50,900
Training of machine operators 30,000
Processing returned products 20,200
Scrap processing (disposal) 24,900
Rework 6,200
Preventative maintenance 28,400
Product design 42,300
Warranty work 9,400
Finished goods inspection 22,800

From the above schedule of activity costs, determine the internal failure costs.

$24,880

$31,100

$60,700

$103,000

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