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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

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
Inspection $ 690 $ 840
Quality engineering $ 315 $ 525
Depreciation of test equipment $ 240 $ 300
Rework labor $ 1,200 $ 1,530
Statistical process control $ 0 $ 225
Cost of field servicing $ 1,275 $ 1,050
Supplies used in testing $ 30 $ 60
Systems development $ 810 $ 750
Warranty repairs $ 3,375 $ 1,125
Net cost of scrap $ 720 $ 1,290
Product testing $ 840 $ 1,650
Product recalls $ 2,250 $ 825
Disposal of production defects $ 780 $ 1,230

Sales have been flat over the past few years, at $75,000,000 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).

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