The followingrepresents the financial information for Domingo Corporation fortwo months.
| March | April |
| Salesrevenue | $ | 540,000 | | $ | 430,000 | |
| Costs | | | | | | |
| Processinspection | $ | 1,500 | | $ | 1,840 | |
| Scrap | | 1,940 | | | 1,870 | |
| Qualitytraining | | 19,500 | | | 13,500 | |
| Warrantyrepairs | | 4,200 | | | 5,100 | |
| Product testingequipment | | 6,600 | | | 7,100 | |
| Customercomplaints | | 2,900 | | | 3,100 | |
| Rework | | 16,000 | | | 19,500 | |
| Preventivemaintenance | | 12,700 | | | 10,200 | |
| Materialsinspection | | 7,400 | | | 5,000 | |
| Fieldtesting | | 8,600 | | | 11,600 | |
|
Required:
a.Classify these items into Prevention, Appraisal, Internal failure,or External failure costs.
The followingrepresents the financial information for Domingo Corporation fortwo months.
| March | April |
| Salesrevenue | $ | 540,000 | | $ | 430,000 | |
| Costs | | | | | | |
| Processinspection | $ | 1,500 | | $ | 1,840 | |
| Scrap | | 1,940 | | | 1,870 | |
| Qualitytraining | | 19,500 | | | 13,500 | |
| Warrantyrepairs | | 4,200 | | | 5,100 | |
| Product testingequipment | | 6,600 | | | 7,100 | |
| Customercomplaints | | 2,900 | | | 3,100 | |
| Rework | | 16,000 | | | 19,500 | |
| Preventivemaintenance | | 12,700 | | | 10,200 | |
| Materialsinspection | | 7,400 | | | 5,000 | |
| Fieldtesting | | 8,600 | | | 11,600 | |
|
Required:
a.Classify these items into Prevention, Appraisal, Internal failure,or External failure costs.
b.Calculate the ratio of the prevention, appraisal, internal failure,and external failure costs to sales for March and April.
