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Managerial Accounting

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What is Percent Change in External Failure Cost?

MGRACT-1SRZCO

At the beginning of the year, Donpo Company initiated a quality improvement program. To help assess the impact of the quality improvement program, the following data were collected for the current and preceding years:

Annual data Last Year This Year
Sales \$2,400,000 \$2,400,000
Quality training \$30,000 \$48,000
Material inspections \$7,000 \$8,000
Product scrapped \$48,000 \$30,000
Product re-worked \$60,000 \$48,000
Product inspections \$10,000 \$12,000
Product warranty claims \$36,000 \$24,000

For this year, what is the percent change in appraisal cost from last year to this year?