Holbrook Corporation Is a Manufacturer of Electronic Stereo Equipment

Essay

Holbrook Corporation is a manufacturer of electronic stereo equipment. The following represents financial information for the year 2008:

Required:
(a) Classify these items into costs of prevention (P), appraisal (A), internal failure (I) or external failure
(E) activities.
(b) Calculate the ratio of prevention, appraisal, internal failure and external failure costs to sales for the year 2008.
(c) Prepare a cost of quality report for the year 2008.