i Data Table 788 109 Semi-Annual COQ Report, Osborn, Inc. (in thousands) 6/30/2016 12/31/2016 6/30/2017 12/31/2017 Prevention costs Machine maintenance $ 480 $ 480 $ 440 $ Supplier training 90 45 Design reviews 218 198 Total prevention costs 683 Appraisal costs Incoming inspections Final testing 327 Total appraisal costs 436 Internal failure costs Rework 206 127 Scrap Total internal failure costs 353 330 External failure costs Warranty repairs 182 89 Customer returns 594 510 263 776 Total external failure costs 599 253 Total quality costs $ 2,096 $ 2,168 $ 1,641 $ 1,211 Total revenues $ 8,220 $ 9,180 $ 9,260 $ 9,050 226 124 333 Osborn, Inc., produces cell phone equipment. Amanda Westerly, Osborn'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. (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 12/31/2016 (in thousands) % of % of total Actual revenues quality costs $ 480 $ 480 21 90 30 218 6% 25% Prevention costs Machine maintenance Supplier training Design reviews Total prevention costs Appraisal costs Incoming inspections Final testing Total appraisal costs Internal failure costs 109 327 436 124 327 451 5 % 21 % % % Rework 226 Scrap Total internal failure costs External failure costs Warranty repairs 182 Customer returns 510 Total external failure costs 594 776 2,096 37% 9 % 25 % 599 2,168 $ $ Total quality costs Total revenues $ 8,220 $ 9,180