Grady Cost of Quality Report Costs Total Costs of Percentage of Total Costs Incurred Quality of Quality (Rounded) Prevention Costs: Total prevention costs Appraisal Costs: Total appraisal costs Internal Failure Costs: Choose from any list or enter any number in the input fields and then click Check Answer. Internal Failure Costs: Total internal failure costs External Failure Costs: Total external failure costs Total costs of quality %Data table Number of units manufactured and sold ............................. 2.500 units Selling price per unit .............................................. $ 1,600 'v'ariable manufacturing and selling costs per unit ..................... $ 7'00 Hours spent by engineers improving design .......................... 800 Testing and inspection hours per unit ............................... 0.5 hours Percentage of units reworked in the plant after inspection .............. 7% Average variable rework costs per freezer ............................ $ 540 Percentage of units repaired under warranty at customers' homes ...... 5% Average variable repair costs at customers\" homes per freezer .......... $ 560 Estimated lost sales due to qualityxeputation. ......................... 450 units Design engineer's labor rate [includes benets and payroll taxes} ....... $55 per hour Inspection costs per hour .......................................... $90 per hour -m Requirements 1. Prepare a Cost of Quality.r {(300) report. In addition to calculating the total costs of each category, calculate the percentage of ECG category ofthe total CDC). 2. Why.r would the variable repair cost at the customers' home generally be higher than the "in factory" rework cost? 3. How can use of the COQ report lead to improvements in the production process or in the quality ofthe product itself\"? .@