For the Year Ended June 30, 20x5 Actual Costs Target Costs Variance Favorable; or Unfavorable Prevention costs: Favorable Vendor certification Unfavorable Total prevention costs Appraisal costs: Test labor Unfavorable Total appraisal costs Internal failure costs: Retesting Rework Total internal failure costs External failure costs: Recalls Product liability Unfavorable Unfavorable Unfavorable Total external failure costs Total quality costs Percentage of sales Unfavorable Feedback Check My Work Long-Term Performance Report Nabors Company had actual quality costs for the year ended June 30, 20x5, as given below Prevention costs Prototype inspection 260,000 520,000 780,000 Vendor certification Total prevention costs Appraisal costs: Process acceptance 275,000 320,000 $595,000 Test labor Total Appraisal costs Internal failure costs: Retesting $ 167,500 335,000 502,500 Rework Total internal failure costs External failure costs: Recalls 252,750 523,000 775,750 $2,653,250 Product lability Total external failure costs Total quality costs At the zero-defect state, Nabors expects to spend $325,000 on quality engineering, $65,000 on vendor certification, and $30,000 on packaging inspection. Assume sales to be $2,800,000 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