1.	Prepare a Cost of Quality (COQ) report. In addition to calculating the total costs of each category, calculate the percentage of COQ category of the total COQ.
2.	Why would the variable repair cost at the customers' home generally be higher than the "in factory" rework cost?
3.	How can use of the COQ report lead to improvements in the production process or in the quality of the product itself?

Number of units manufactured and sold Selling price per unit Variable manufacturing and selling costs per unit Hours spent by engineers improving design Testing and inspection hours per unit 1.0 hours Percentage of units reworked in the plant after inspection Average variable rework costs per freezer Percentage of units repaired under warranty at customers' homes Average variable repair costs at customers' homes per freezer .$ 7% 350 4% Estimated lost sales due.to. quality reputation 550 Design engineer's labor rate (includes benefits and payroll taxes) . \$60 per hour Inspection costs per hour $50 per hour Gambrell Industries manufactures freezers. Here is some information about its "LX17" line of freezers over the past year: (Click the icon to view the information.) f