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"Hill Stand Company is currently performing a cost of quality analysis of its Memphis facilities. The following are costs compiled by the facility accountant."
Inspection $1,500
Warranty repair 2,800
Testing of new materials 400
Product testing 950
Abnormal spoilage 645
Scrap $150
Preventive equipment maintenance 590
Liability claims 1,870 Rework 1,285
Hill Stand’s total internal failure cost is