E19-18 (similar to) Question Help Imperial, Inc., produces cell phone equipment. Nancy Merryfield, Imperial's president, implemented a quality-improvement program that has now been in operation for 2 years. The cost report shown here has recently been issued. B (Click the icon to view the cost report.) Read the requirements. Requirement 1. For each period, calculate the ratio of each COQ category to revenues and to total quality costs. Begin by calculating the ratio of each COQ category to revenues and to total quality costs for 6/30/2016, then 12/31/2016. (Round your answers to the nearest whole percentage. Total quality costs as a percentage of revenues may not match the sum of each category's percentage due to rounding.) 6/30/2016 (in thousands) % of % of total Actual revenues quality costs Prevention costs Machine maintenance $ 470 Supplier training 13 60 Design reviews 543 % % Total prevention costs Appraisal costs Incoming inspections 107 Incoming inspections 107 341 Final testing 448 Total appraisal costs % % Internal failure costs Rework 238 130 Scrap Total internal failure costs 368 % % External failure costs Warranty repairs 167 601 Customer returns Total external failure costs 768 % % $ 2,127 Total quality costs % Total revenues $ 8,220 X Data Table Semi-Annual COQ Report, Imperial, Inc. (in thousands) 6/30/2016 12/31/2016 6/30/2017 12/31/2017 Prevention costs Machine maintenance 470 $ 470 $ 400 $ 320 Supplier training 13 98 49 39 60 218 212 200 Design reviews 543 786 661 559 Total prevention costs Appraisal costs Incoming inspections 107 122 80 61 341 341 297 200 Final testing 448 463 377 261 Total appraisal costs Internal failure costs Rework 238 204 164 115 130 121 74 59 Scrap 368 325 238 174 Total internal failure costs External failure costs Warranty repairs 167 89 82 58 601 537 262 189 Customer returns 768 626 344 247 Total external failure costs $ 2,127 $ 2,200 $ 1,620 $ 1,241 Total quality costs Total revenues $ 8,220 $ 9,180 $ 9,420 $ 9,050