Questions: Check my work Problem 12-7 (Algo) The following table lists all costs of quality incurred by Sam's Surf Shop last year. Annual inspection costs 235,000 Annual cost of scrap materials 426,000 Annual rework cost 174,679 Annual cost of quality training 596,000 Annual warranty cost 1,826,000 Annual testing cost 648,000 What was Sam's appraisal cost for quality last year? Appraisal cost

To determine Sam's appraisal cost for quality last year, we need to identify which of the listed costs fall under the category of appraisal costs. Appraisal costs are associated with measuring and monitoring activities to ensure quality standards are met. These typically include costs related to inspection and testing.

From the provided table, the relevant costs are:

• Annual inspection costs: $235,000
• Annual testing cost: $648,000

Adding these together gives us the total appraisal cost:

\[ \text{Appraisal cost} = \$235,000 + \$648,000 = \$883,000 \]

Therefore, Sam's appraisal cost for quality last year was $883,000.