The following information was received from Sheltie Manufacturing. Warranty claims $ 170,000 Product liability lawsuits 200,000 Rework costs 600,000 Quality training 355,000 Inspection of i

The following information was received from Sheltie Manufacturing.

Warranty claims $ 170,000

Product liability lawsuits 200,000

Rework costs 600,000

Quality training 355,000

Inspection of incoming material 900,000

Statistical process control 650,000

Waste 390,000

Product quality audits 485,000

Total sales $50,000,000

REQUIRED:

a. Compute the total prevention costs.

b. Compute the total appraisal costs.

c. Compute the total internal failure costs.

d. Compute the total external failure costs.

e. Define each of the above costs.

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