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

$

485,000

Cost of goods sold

272,000

Warranty expense

34,000

Inspection costs

12,000

Scrap and rework

10,600

Product returns due to defects

6,000

Depreciation expense

32,000

Machine maintenance expense

12,000

Wage expense

135,000

Machine breakdown costs

4,000

Estimated lost sales due to poor quality

11,000

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

Prevention Costs
		$
Appraisal Costs:
		$
Internal Failure Costs:
		$
External Failure Costs:
Total Quality Costs

b. What percentage of sales revenue is being spent on prevention and appraisal activities? (Round your answer to 1 decimal place.)

c.	What percentage of sales revenue is being spent on internal and external failure costs? (Round your answer to 1 decimal place.)