Problem $12-19($Algo$)$ Quality Cost Report $[$LO$12-2]$

In response to intense foreign competition, Florex Company has taken steps to improve the quality of its products. A summary of its quality costs $($in thousands$)$ over the past two years is given below:

Costs $($in thousands$)$

Last Year This Year

Inspection $ $630$ $ $1,218$

Quality engineering $ $420$ $ $630$

Depreciation of test equipment $ $588$ $ $420$

Rework labor $ $1,260$ $ $1,680$

Statistical process control $ $0$ $ $420$

Cost of field servicing $ $1,470$ $ $1,092$

Supplies used in testing $ $42$ $ $42$

Systems development $ $840$ $ $1,050$

Warranty repairs $ $3,570$ $ $1,512$

Net cost of scrap $ $210$ $ $1,050$

Product testing $ $840$ $ $1,260$

Product recalls $ $2,940$ $ $924$

Disposal of production defects $ $630$ $ $420$

Sales have been flat over the past few years, at $$84,000,000$ per year.

Required:

$1.$ Prepare a quality cost report for this year and last year.

Note: Enter amount values in thousands. Round your percentage answers to $2$ decimal places $($i$.$e $0\mathrm{.}1234$ should be entered as $12\mathrm{.}34).$