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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 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 $ 630 $ 1,008
Quality engineering $ 420 $ 756
Depreciation of test equipment $ 588 $ 210
Rework labor $ 1,050 $ 1,260
Statistical process control $ 0 $ 294
Cost of field servicing $ 1,260 $ 1,092
Supplies used in testing $ 42 $ 42
Systems development $ 840 $ 840
Warranty repairs $ 4,200 $ 1,344
Net cost of scrap $ 420 $ 1,050
Product testing $ 840 $ 1,680
Product recalls $ 2,520 $ 1,008
Disposal of production defects $ 630 $ 840
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).
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