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Interim Quality Performance Report Davis, Inc., had the following quality costs for the years ended December 3 1 , 2 0 x 4 and 2

Interim Quality Performance Report
Davis, Inc., had the following quality costs for the years ended December 31,20x4 and 20x5:
20x420x5
Prevention costs:
Quality audits $74,000 $111,000
Vendor certification 118,500177,750
Appraisal costs:
Product acceptance $87,000 $130,500
Process acceptance 97,000102,500
Internal failure costs:
Retesting $104,000 $84,000
Rework 200,000170,000
External failure costs:
Recalls $142,500 $114,000
Warranty 305,000294,000
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 $12,000,000 for both 20x4 and 20x5.
Required:
Question Content Area
1. Calculate the budgeted costs for 20x5.

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