Objective 3 Example 13.2 Loring Company had total sales of $2,400,000 for fiscal 20X1. The costs of quality-related activities are given below. Discounts due to defects Retesting Required: $100,000 30,000 Vendor certification 14.000 Rework 120,000 Marketing research 6,000 Process acceptance 14,000 Field testing 16,000 Product liability 200,000 1. Prepare a quality cost report, classifying costs by category and expressing each category as a percentage of sales. What message does the cost report provide? 2. Prepare a bar graph and pie chart that illustrate each category's contribution to total quality costs. Comment on the significance of the distribution.