Long-Term Performance Report Nabors Company had actual quality costs for the year ended June 30, 20x5, as given below. Prevention costs: Prototype inspection Vendor certification Total prevention costs Appraisal costs: Process acceptance Test labor Total Appraisal costs Internal failure costs: Retesting $ 310,000 620,000 $930,000 $325,000 370,000 $ 695,000 Rework Total internal failure costs External failure costs: Recalls Product liability Total external failure costs Total quality costs $ 192,500 385,000 $ 577,500 $ 212,000 528,750 $ 740,750 $2,943,250 At the zero-defect state, Nabors expects to spend $387,500 on prototype inspection, $77,500 on vendor certification, and $50,000 on process acceptance. Assume sales to be $2,000,000. Required: 1. Prepare a long-range performance report for 20x5. Enter all answers as positive amounts. If the budget variance amount is unfavorable select "Unfavorable" in the last column of the table. Select "Favorable" if it is favorable. Round percentage answers to two decimal places, if rounding is required. For example, 5.789% would be entered as "5.79". Enter "O" as the target cost amount if there would be no cost at the zero-defect state. Nabors Company Long-Range Performance Report For the Year Ended June 30, 20x5 Actual Costs Target Costs Budget Variance Favorable; or Unfavorable Prevention costs: Prototype inspection 310,000 387,500 $ 77,500 Favorable Vendor certification 620,000 77,500 402,500 x Unfavorable Total prevention costs 930,000 345,000 X $ 345,000 x Unfavorable Appraisal costs: Process acceptance Test labor Total appraisal costs 695,000 50,000 325,000 50,000 195,000 X Unfavorable 370,000 0 290,000 X Unfavorable 485,000 X Unfavorable Internal failure costs: Retesting 192,500 0 152,500 X Unfavorable Rework 385,000 0 305,000 X Unfavorable Total internal failure costs 577,500 0 457,500 X Unfavorable External failure costs: Recalls 209,500 X 0 208,000 X Unfavorable Product liability 597,250 X 0 558,000 X Unfavorable Total external failure costs 806,750 X 0 766,000 Unfavorable Total quality costs 2,009,250 X $ 395,000 2,053,500 x Unfavorable Percentage of sales % % % Unfavorable