Charles Berkle is the manager of Nogain Manufacturing and is interested in doing a cost of quality analysis. The following cost and revenue data are available for the most recent year ended December 31.

Sales revenue	$	250,000
Cost of goods sold		140,000
Warranty expense		20,000
Inspection costs		14,000
Scrap and rework		7,100
Product returns due to defects		6,000
Depreciation expense		10,000
Machine maintenance expense		1,600
Wage expense		35,000
Machine breakdown costs		4,000
Estimated lost sales due to poor quality		5,000

a. Classify each of these costs into the four quality cost categories and prepare a cost of quality report for Nogain.

b. What percentage of sales revenue is being spent on prevention and appraisal activities?

c. What percentage of sales revenue is being spent on internal and external failure costs?