Listed below are costs of quality that a manufacturing company has incurred throughout its operations.

The U.S. dollar amount of the costs of quality classified as prevention costs for the manufacturing firm would be:

A. US$643,000

B. US$701,000

C. US$736,000
D. US$768,000

Explanation:
Prevention costs are incurred to prevent defects. Examples are the costs of employee training, review of equipment design, preventive maintenance, and evaluation of suppliers. Accordingly, the prevention costs equal US $701,000 ($275,000 design reviews + $180,000 process engineering + $90,000 scheduled maintenance + $156,000 training).