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Harvey Company designs and produces surgical lasers. Its product is brilliantly designed, but the manufacturing process has been plagued by chronic quality control problems. To

Harvey Company designs and produces surgical lasers. Its product is brilliantly designed, but the manufacturing process has been plagued by chronic quality control problems. To help address the situation, Harvey formed a cross-functional team of managers that quantified its costs of quality over the last two quarters as follows:

Costs (in thousands)
Quarter 1 Quarter 2
Cost of testing equipment $ 270 $ 390
Customer returns of defective goods $ 3,200 $ 200
Downtime due to quality problems $ 600 $ 1,100
Inspection $ 1,700 $ 2,770
Net cost of scrap $ 800 $ 1,300
Product recalls $ 3,500 $ 600
Quality engineering $ 1,080 $ 1,650
Rework labor $ 1,400 $ 1,600
Statistical process control $ 0 $ 270
Supplies used in testing $ 30 $ 40
Systems development $ 120 $ 680
Warranty repairs $ 3,300 $ 2,800

What are the first quarters total prevention, appraisal, internal failure, and external failure costs? What are the same four amounts for the second quarter?

Quarter 1 (in thousands) Quarter 2 (in thousands)
Prevention
Appraisal
Internal failure
External failure
Quarter 1 (%) Quarter 2 (%)
Prevention % %
Appraisal % %
Internal failure % %
External failure % %

What are the first quarters total prevention, appraisal, internal failure, and external failure costs each stated as a percent of the first quarters sales? What are the same four percentages for the second quarter? (Round your answers to 1 decimal place.)

Quarter 1 (%) Quarter 2 (%)
Prevention % %
Appraisal % %
Internal failure % %
External failure % %

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