Problem 1A-4 Quality Cost Report [LO1-7, L01-8] In response to Intenslve forelgn competition, the management of Florex Company has attempted over the past year to improve the quality of Its products. A statistical process control system has been Installed and other steps have been taken to decrease the amount of warranty and other field costs, which have been trending upward over the past several years. Costs relating to quality and quallity control over the last two years are glven below Costs (in thousands Last Year Thi: Year Inspection Quality engineering Depreciation of test equipment Rework labor Statistical Cost of field servicing Supplies used in testing Systems developnent Warranty repairs Net cost of scrap Product testing Product recall: Disposal of defective products 630 1,218 $42863e S 588 428 $ 1,268 1,68e e 428 $ 1,478 1,892 42 S 848 1,e5e $ 3,578 1,512 $218 1,e5e process control 42 $ $848 1,26 $ 2,948 924 63428 Sales have been flat over the past few years, at $84,000,000 per year. A great deal of money has been spent in the effort to upgrade quality, and management is anxlous to see whether or not the effort has been effective. Required: 1. Prepare a quality cost report that contalns data for both this year and last year. (Enter amount values in thousands. Round your percentage answers to 2 decimal places (Le 0.1234 should be entered as 12.34).) Quality Cost Report Last Year This Year in Percent Sales mount (in Sales 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 cost