list of the costs, which are related to failing to control quality and determine the total dollar amount of these costs.

Crowder Manufacturing Company manufactures and sells ceiling fans. Crowder incurred the following costs related to quality for the year:

  1. Cost of warranty                                      $35,000
  2. Cost of employee quality training           $27,000
  3. Cost incurred to rework fans                   $18,000
  4. Spoilage cost (net)                                   $15,000
  5. Cost of handling customer complaints     $11,000
  6. Depreciation cost of test equipment         $ 6,000
  7. Cost of quality circles                               $ 5,000
  8. Maintenance cost of test equipment        $ 3,000
  9. Cost of retesting reworked fans               $ 2,000
  10. Cost of final testing of fans                       $ 1,000

Required:

  1. list of the costs, which are related to controlling quality and determine the total dollar amount of these costs.
  2.  list of the costs, which are related to failing to control quality and determine the total dollar amount of these costs.
  3. Explain why you might want to incur higher costs for controlling quality.
 

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