accounting 458853

Rebecca’s Pottery Loft makes a variety of handmade pottery items. She has asked for your advice on one of the items manufactured-a clay pelican. The following information is provided.

Number of defective pelicans: 1,100

Number of pelicans returned: 150

Number of pelicans reworked: 200

Profit per defect-free pelican: $10.00

Processing cost of a returned pelican: $20.00

Profit per defective pelican: $5.00

Cost to rework defective pelican $4.00

Total appraisal costs: $3,400

Total prevention costs $6,000

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a. calculate the total profits lost because Rebecca sold defective pelicans.

b. calculate the rework cost

c. calculate the cost of processing customer returns

d. calculate total failure cost

e. calculate total quality cost


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