Davis, Inc., had the following quality costs for the years ended December 31, 20x4 and 20x5:

	20x4	20x5
Prevention costs:
Quality audits	$66,000	$99,000
Vendor certification	118,500	177,750
Appraisal costs:
Product acceptance	$89,000	$133,500
Process acceptance	107,000	117,500
Internal failure costs:
Retesting	$102,000	$86,000
Rework	200,000	176,000
External failure costs:
Recalls	$127,500	$102,000
Warranty	335,000	314,000

At the end of 20x4, management decided to increase its investment in control costs by 50 percent for each categorys items with the expectation that failure costs would decrease by 20 percent for each item of the failure categories. Sales were $12,000,000 for both 20x4 and 20x5.

Prepare an interim quality performance report. Enter all answers as positive amounts. If there is no variance enter "0" for your answer. If the budget variance amount is unfavorable select "Unfavorable" in the last column of the table, select "Favorable" if it is favorable, or No effect if there is no change. Round percentage answers to two decimal places. For example, 5.789% would be entered as "5.79".

blank	Actual Costs	Budgeted Costs	Variance	Unfavorable, Favorable or No effect
Prevention costs:
Process acceptanceProduct acceptanceQuality auditsRecallsRetestingReworkWarrantyQuality audits
Process acceptanceProduct acceptanceRecallsRetestingReworkVendor certificationWarrantyVendor certification
Total prevention costs
Appraisal costs:
Product acceptanceQuality auditsRecallsRetestingReworkVendor certificationWarrantyProduct acceptance
Process acceptanceQuality auditsRecallsRetestingReworkVendor certificationWarrantyProcess acceptance
Total appraisal costs
Internal failure costs:
Process acceptanceProduct acceptanceQuality auditsRecallsRetestingVendor certificationWarrantyRetesting
Process acceptanceProduct acceptanceQuality auditsRecallsReworkVendor certificationWarrantyRework
Total internal failure costs
External failure costs:
Process acceptanceProduct acceptanceQuality auditsRecallsRetestingReworkVendor certificationRecalls
Process acceptanceProduct acceptanceQuality auditsRetestingReworkVendor certificationWarrantyWarranty
Total external failure costs
Total quality costs
Percentage of sales