In response to intense foreign competition, Florex Company has taken steps to improve the quality of its products. A summary of its quality costs (in thousands) over the past two years is given below: Costs (in thousands) Last Year This Year $ 630 $ 1,218 $ 420 $ 630 Inspection Quality engineering Depreciation of test equipment Rework labor Statistical process control Cost of field servicing Supplies used in testing Systems development Warranty repairs Net cost of scrap Product testing Product recalls Disposal of production defects $ 588 $1,260 $ 0 $1,470 $42 $ 840 $3,570 $ 420 $ 1,680 $ 420 $ 1,092 $ 42 $ 1,050 $ 1,512 $ 210 $ 1,050 $ 840 $ 1,260 $ 2,940 $ 924 $ 630 $420 Sales have been flat over the past few years, at $84,000,000 per year. Required: 1. Prepare a quality cost report for this year and last year. Note: Enter amount values in thousands. Round your percentage answers to 2 decimal places (i.e 0.1234 should be entered as 12.34). Prevention costs: Systems development Statistical process control Answer is complete but not entirely correct. Florex Company Quality Cost Report Last Year This Year Amount (in thousands) Percent of Amount (in thousands) Sales Percent of Sales $ 840 67.00 $ 1,050 63.00 0 0.00 0 0.00 420 33.00 630 37.00 1,260 100.00 1,680 100.00 Quality engineering Total prevention costs Appraisal costs Inspection 630 Product testing 840 Supplies used in testing 42 Depreciation of test equipment 588 0000 30.00 1,218 41.00 40.00 1,260 43.00 2.00 x 42 1.00 28.00 420 14.00 Total appraisal costs 2,100 100.00 2,940 99.00 Internal failure costs: Net cost of scrap 210 10.00 1,050 33.00 Rework labor 1,260 60.00 1,680 53.00 Disposal of production defects 630 30.00 420 13.00 Total internal failure costs 2,100 100.00 3,150 99.00 External failure costs: Product recalls Warranty repairs 2,940 ( 37.00 924 26.00 3,570 ( 45.00 1,512 43.00 Cost of field servicing 1,470 18.00 1,092 31.00 Total external failure costs 7,980 100.00 3,528 100.00 Total quality cost $ 13,440 100.00 $ 11,298 100.00