Long-Term Performance Report Nabors Company had actual quality costs for the year ended June 30, 20x5, as given below. $ 260,000 520,000 $ 780,000 Prevention costs: Prototype inspection Vendor certification Total prevention costs Appraisal costs: Process acceptance Test labor Total Appraisal costs Internal failure costs: Retesting Rework Total internal failure costs External failure costs: $ 275,000 320,000 $ 595,000 $ 167,500 335,000 $ 502,500 Recalls Product liability Total external failure costs Total quality costs $ 399,250 560,250 $ 959,500 $2,837,000 At the zero-defect state, Nabors expects to spend $325,000 on quality engineering, $65,000 on vendor certification, and $55,000 on packaging inspection. Assume sales to be $2,600,000. 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. would be entered as "5.79". Enter "0" as the target cost amount if there would be no cost at the zero-defect state. 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 "0" 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: Total prevention costs Appraisal costs: Total appraisal costs Internal failure costs: Total internal failure costs External failure costs: Total external failure costs $ Total quality costs Percentage of sales 2. Why are quality costs still present for the zero-defect state? Long-Term Performance Report Nabors Company had actual quality costs for the year ended June 30, 20x5, as given below. $ 260,000 520,000 $ 780,000 Prevention costs: Prototype inspection Vendor certification Total prevention costs Appraisal costs: Process acceptance Test labor Total Appraisal costs Internal failure costs: Retesting Rework Total internal failure costs External failure costs: $ 275,000 320,000 $ 595,000 $ 167,500 335,000 $ 502,500 Recalls Product liability Total external failure costs Total quality costs $ 399,250 560,250 $ 959,500 $2,837,000 At the zero-defect state, Nabors expects to spend $325,000 on quality engineering, $65,000 on vendor certification, and $55,000 on packaging inspection. Assume sales to be $2,600,000. 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. would be entered as "5.79". Enter "0" as the target cost amount if there would be no cost at the zero-defect state. 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 "0" 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: Total prevention costs Appraisal costs: Total appraisal costs Internal failure costs: Total internal failure costs External failure costs: Total external failure costs $ Total quality costs Percentage of sales 2. Why are quality costs still present for the zero-defect state
