4 SR Company manufactures two types of TV sets, C1 and C2. The labour rates for design is $75 per hour and for testing and inspection is $40 per hour. The number of units manufactured and sold for C1 and C2 is 10,000 units and 5,000 units respectively. Other information on each TV set is given below C1 C2 Selling price per unit 2,000 1,550 Variable costs per unit Total hours spent on design Testing and inspection hours/unit 1,200 700 5,500 1,500 0.8 0.5 Rework costs per unit $500 $400 Repair costs per unit $600 $450 Estimated lost sales from poor quality 250 units Percentage of units reworked in plant 6% 12% Percentage of units repaired at customer's site 4% 8% Required: 1. Prepare a cost of quality report (COC) for both products, calculate the ratio of each COQ category as a percentage of total quality cost. (10 marks) 2. Discuss the briefly the effectiveness of the quality assurance program of these two products implemented by the company. 3. (5 marks) The accounting manager is not sure of the accounting treatment regarding to the spoiled units as they implement both process costing and job order costing systems. Please advise