Interim Quality Performance Report Davis, Inc., had the following quality costs for the years ended December 31, 20x4 and 20x5: 20x4 20x5 Prevention costs: Quality audits $67,000 $100,500 Vendor certification 124,500 186,750 Appraisal costs: Product acceptance $89,000 $133,500 Process acceptance 111,000 102,500 Internal failure costs: Retesting $104,000 $94,000 Rework 200,000 185,000 External failure costs: $157,500 325,000 $126,000 298,000 Recalls Warranty At the end of 20x4, management decided to increase its investment in control costs by 50 percent for each category's items with the expectation that failure costs would decrease by 20 percent for each item of the failure categories. Sales were $11,500,000 for both 20x4 and 20x5. Required: 1. Calculate the budgeted costs for 20x5. Prepare an interim quality performance report. Enter all answers as positive amounts. If there is no variance enter "0" for your answer. If the budget variance amount is unfavorable select "Unfavorable" in the last column of the table, select "Favorable" if it is favorable, or No effect if there is no change. Round percentage answers to two decimal places. For example, 5.789% would be entered as "5.79".