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Employee training $ 220,000 Product design 260,000 ...

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Accounting

Employee training $ 220,000
Product design 260,000
Supplier certification 100,000
Process inspection 380,000
Depreciationpollution-control equipment 520,000
Maintain pollution-control equipment 320,000
Clean up polluted lake 620,000
Restore land after use 820,000
Property damage claim 720,000

Required:

1. Prepare a cost-of-quality (COQ) report of environmental management for the year. Determine subtotals for each of the four reporting categories, and express each subtotal as a percentage of total operating expenses ($10,000,000) for the year. (Hint: Classify the pollution-control costs as internal failure costs, under the assumption that the process pollutes and that the pollution-control equipment used by the company controls the release of pollutants into the environment.)

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