In: Operations Management
A quality control activity analysis indicated the following four
activity costs of a hotel:
Inspecting cleanliness of rooms | $108,000 |
Processing lost customer reservations | 450,000 |
Rework incorrectly prepared room service meal | 54,000 |
Employee training | 288,000 |
Total | $900,000 |
Sales are $3,000,000. Prepare a cost of quality report. Round percent of sales to one decimal place.
Cost of Quality Report | |||
Quality Cost Classification | Quality Cost | Percent of Total Quality Cost | Percent of Total Sales |
Prevention | $ | % | % |
Appraisal | % | % | |
Internal failure | % | % | |
External failure | % | % | |
Total | $ | % | % |