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(The following information applies to the questions displayed below.] Acme Materials Company manufactures and sells synthetic coatings that can withstand high temperatures. Its primary customers are aviation manufacturers and maintenance companies. The following table contains financial information pertaining to cost of quality (COQ) in 2022 and 2023 (in thousands of dollars): 2022 $ 16,400 340 164 290 24 540 740 154 Sales Materials inspection In-process (production) inspection Finished product inspection Preventive equipment maintenance Scrap (net) Warranty repairs Product design engineering Vendor certification Direct costs of returned goods Training of factory workers Product testing-equipment maintenance Product testing labor Field repairs Rework before shipment Product liability settlement Emergency repair and maintenance 2023 $ 20,400 64 129 74 64 340 490 310 64 84 144 64 94 44 204 64 79 14 315 44 64 250 74 280 400 240 uired. Required: 1. Classify the cost items in the table into cost-of-quality (COQ) categories. 2. Calculate the ratio of each COQ category to revenues in each of the 2 years. 3. Calculate the percentage change in each COQ category and total COQ and comment on the results: a. Percentage change in total COQ as a percentage of sales, from 2022 to 2023; b. Total COQ in 2023 expressed as a percentage of 2022 sales dollars; c. Percentage change in total prevention costs, 2022 to 2023; d. Percentage change in total appraisal costs, 2022 to 2023; e. Percentage change in total internal failure costs, 2022 to 2023; f. Percentage change in total external failure costs, 2022 to 2023. Reg 1 and 2 Reg 3 Classify the cost items in the table into cost-of-quality (COD) categories. Calculate the ratio of each COQ category to revenues in each of the 2 years. (Enter amounts in thousands, not in whole dollar. Round your "Percentage" answers to 2 decimal places.) 2022 2023 % of Sales Amount % of Sales Amount Cost of quality Prevention costs: 96 %6 Total prevention costs Appraisal costs: % %6 Total appraisal costs Internal failure costs: 96 %6 Total internal failure costs External failure costs: 96 % Total external failure costs Total cost of quality (COQ) 96 %6 Red 1 and 2 Req3 > Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Calculate the percentage change in each COQ category and total COQ and comment on the results: (Round your answers to 2 decimal places.) % % % 3a. Percentage change in total COQ as a percentage of sales, from 2022 to 2023 3b. Total COQ in 2023 expressed as a percentage of 2022 sales dollars 3c. Percentage change in total prevention costs, 2022 to 2023 3d. Percentage change in total appraisal costs, 2022 to 2023 3e. Percentage change in total internal failure costs, 2022 to 2023 36. Percentage change in total external failure costs, 2022 to 2023 % %
