Question 2 Cost of Quality Report Buster Company manufacture s custom-designed milling machines and incurred the following cost of quality in 2005 and 2006: 2006 2005 Rework Quality manual Product design Testing Retesting Product recalls Field service Disposal of defective units R200,000 40,000 300,000 80,000 50,000 360,000 230,000 90,000 R 250,000 50,000 270,000 60,000 90,000 500,000 350,000 85,000 The sales in each of the two years totaled R6,000,000. The firm's cost of goods sold is typically one-third of net sales. Required 1. Prepare a cost of quality report that classifies the firm's costs under the proper cost of quality category. 2. Calculate the ratio of each cost of quality category to sales in each of the two years. Comment on the trends in cost of quality between 2005 and 2006. 3. Give three examples of nonfinancial measures that Buster Company might want to monitor as part of a total quality management effort