g nabors company had actual quality costs for the year ended june 30, 20x5, as given below. prevention costs: prototype inspection $ 340,000 vendor certification 680,000 total prevention costs $ 1,020,000 appraisal costs: process acceptance $ 355,000 test labor 400,000 total appraisal costs $ 755,000 internal failure costs: retesting $ 207,500 rework 415,000 total internal failure costs $ 622,500 external failure costs: recalls $ 330,250 product liability 596,000 total external failure costs $ 926,250 total quality costs $3,323,750 at the zero-defect state, nabors expects to spend $425,000 on prototype inspection, $85,000 on vendor certification, and $65,000 on process acceptance. assume sales to be $2,700,000.
Required:
1. Prepare a long-range performance report for 20x5. Enter all answers as positive amounts. If the budget variance amount is unfavorable select "Unfavorable" in the last column of the table. Select "Favorable" if it is favorable. Round percentage answers to two decimal places, if rounding is required. For example, 5.789% would be entered as "5.79". Enter "0" as the target cost amount if there would be no cost at the zero-defect state.
Nabors Company
Long-Range Performance Report
For the Year Ended June 30, 20x5
Actual Costs Target Costs Budget Variance Favorable; or Unfavorable
Prevention costs: Packaging inspection
Product liability
Prototype inspection
Recalls
Retesting
$ $ $ Favorable
Unfavorable
Packaging inspection
Product liability
Recalls
Retesting
Vendor certification
Favorable
Unfavorable
Total prevention costs $ $ $ Favorable
Unfavorable
Appraisal costs: Process acceptance
Product liability
Quality engineering
Recalls
Retesting
$ $ $ Favorable
Unfavorable
Product liability
Quality engineering
Recalls
Retesting
Test labor
Favorable
Unfavorable
Total appraisal costs $ $ $ Favorable
Unfavorable
Internal failure costs: Packaging inspection
Product liability
Quality engineering
Recalls
Retesting
$ $ Favorable
Unfavorable
Packaging inspection
Product liability
Quality engineering
Recalls
Rework
Favorable
Unfavorable
Total internal failure costs $ $ Favorable
Unfavorable
External failure costs: Packaging inspection
Quality engineering
Recalls
Retesting
Rework
$ $ Favorable
Unfavorable
Packaging inspection
Product liability
Quality engineering
Retesting
Rework
Favorable
Unfavorable
Total external failure costs $ $ Favorable
Unfavorable
Total quality costs $ $ $ Favorable
Unfavorable
Percentage of sales % % % Favorable
Unfavorable