Drop down menus in order for #1, also determine if favorable or unfavorable -

Drop down menu for #2 -

Nabors Company had actual quality costs for the year ended June 30, 20x5, as given below. Prevention costs: $ 270,000 540,000 Prototype inspection Vendor certification Total prevention costs Appraisal costs: $ 810,000 Process acceptance $ 285,000 Test labor 330,000 $ 615,000 Total Appraisal costs Internal failure costs: Retesting $ 172,500 Rework 345,000 Total internal failure costs $ 517,500 External failure costs: Recalls $ 223,750 Product liability 402,750 Total external failure costs $ 626,500 Total quality costs $2,569,000 At the zero-defect state, Nabors expects to spend $337,500 on prototype inspection, $67,500 on vendor certification, and $80,000 on process acceptance. Assume sales to be $2,300,000. Required: 1. Prepare a long-range performance report for 20x5. Enter all answers as positive amounts. If the budget variance amount is unfavorable select "Unfavorable" in the last column of the table. Select "Favorable" if it is favorable. Round percentage answers to two decimal places, if rounding is required. For example, 5.789% would be entered as "5.79". Enter "0" as the target cost amount if there would be no cost at the zero- defect state. Nabors Company Long-Range Performance Report For the Year Ended June 30, 20x5 Actual Costs Target Costs Budget Variance Favorable; or Unfavorable Prevention costs: Total prevention costs Appraisal costs: Total appraisal costs Internal failure costs: Total internal failure costs pod pold od ad nud Didi External failure costs: Total external failure costs Total quality costs Percentage of sales % 2. Why are quality costs still present for the zero-defect state? Packaging inspection Product liability Prototype inspection Recalls Retesting Packaging inspection Product liability Recalls Retesting Vendor certification Process acceptance Product liability Quality engineering Recalls Retesting Product liability Quality engineering Recalls Retesting Test labor Packaging inspection Product liability Quality engineering Recalls Retesting Packaging inspection Product liability Quality engineering Recalls Rework Packaging inspection Quality engineering Recalls Retesting Rework Packaging inspection Product liability Quality engineering Retesting Rework Inefficiencies mean that some defects will still occur. Prevention costs are value-added costs that are necessary to maintain the quality gains. Some non-value-added costs will still persist, even at the zero-defect state