Long-Term Performance Report Nabors Company had actual quality costs for the year ended June 30, 20x5, as given below. Prevention costs: Prototype inspection $360,000 Vendor certification 720,000 Total prevention costs $1,080,000 Appraisal costs: Process acceptance $375,000 Test labor 420,000 Total Appraisal costs $795,000 Internal failure costs: Retesting $217,500 Rework 435,000 Total internal failure costs $652,500 External failure costs: Recalls Product liability Total external failure costs Total quality costs $354,500 422,000 $ 776,500 $3,304,000 At the zero-defect state, Nabors expects to spend $450,000 on prototype inspection, $90,000 on vendor certification, and $70,000 on process acceptance. Assume sales to be $2,500,000. 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 "0" as the target cost amount if there would be no cost at the zero-defect state. Nabors Company