A quality control activity analysis indicated the following four activity costs of a hotel.
Verifying credit card information $40,000
Customer service training 20,000
Discounting room rates due to poor customer service 16,050
Correcting charges to customer invoices 8,000
Total $84,050
Sales are $750,000 for the year.
Prepare a cost of the quality report.
Cost of Quality Report
Quality Cost Classification Quality Cost Percent of Total Quality Cost Percent of Total Sales
Prevention $_____ _____% _____%
Appraisal $_____ _____% _____%
Internal Failure $_____ _____% _____%
External Failure $_____ _____% _____%
$_____ _____% _____%
