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The following are the expected quality costs of Best Bike Ltd, a major bicycle manufacturer:...

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Accounting

The following are the expected quality costs of Best Bike Ltd, a major bicycle manufacturer:

Quality inspections during processing $10,800
Cost of quality training programs $25,700
Cost of replacement bikes provided under warranty $13,500
Laboratory testing of bikes and components $16,800
Cost of rewelding faulty joints discovered during processing $13,400
Sales commissions on faulty bikes returned by customers $7,600
Operating an X-ray machine to detect faulty welds $23,500
Rework on defective wheels $18,900
Lost contribution on time to correct production line quality problems $22,300
Contribution margin forgone on lost future bike sales $11,900

Calculate the total appraisal costs.

$51,100

$33,000

$34,300

$54,600

$27,600

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