Required information [The following information applies to the questions displayed below] Harvey Company designs and produces surgical lasers. Its product is brilliantly designed, but the manufacturing process has been plagued by chronic quality control problems. To help address the situation, Harvey formed a cross-functional team of managers that quantified its costs of quality over the last two quarters as follows: Costs (in thousands) Quarter 1 Quarter 2 Cost of testing equipment $ 270 $ 390 Customer returns of defective goods $ 3,200 $ 200 Downtime due to quality problems $ 600 $ 1,100 Inspection $ 1,700 $ 2,770 Net cost of scrap $ 800 $ 1,300 Product recalls $ 3,500 $ 600 Quality engineering $ 1,080 $ 1,550 Rework labor $ 1,400 $ 1,500 Statistical process control $ 0 $ 270 Supplies used in testing $ 30 $ 40 Systems development $ 120 $ 680 Warranty repairs $ 3,300 $ 2,800 The company's sales were $95 million in Quarter1 and $100 million in Quarter 2. Required: 1. Go to the tab titled Template A: a. For each cost described in cells A6 through A17, choose the correct quality cost classification (i.e., prevention, appraisal, internal failure, or external failure) from the drop-down list that appears when you put the cursor in each of cells 86 through 817. b. Create formulas in cells D6 through D17 that state each individual cost from Quarter 1 (as shown in cells C6 through C17) as a percent of the first quarter's total cost of quality (as shown in cell C18). Repeat this process in column 6 for quarter 2. :2. Create formulas in cells E6 through E17 that state each individual cost from Quarter 1 (as shown in cells C6 through C17) as a percent of the first quarter's total sales (as shown in cell C20). Repeat this process in column H for quarter 2. Complete this question by entering your answers in the tabs below. Req 1A Req 15 ' Req 1C What is the correct quality cost classification for each of the following quality costs? Customer returns of defective goods Net cost of scrap Quality engineering Statistical process control Supplies used in testing Warranty repairs For each of the quality costs shown below, what is the amount of the cost as a percent of the total cost of quality? The first column of answers relates the first quarter and the second column relates to the second quarter. (Round your answers to 1 decimal place.) Quarter 1 Quarter 2 (%) (%) Cost of testing equipment % % Inspection % Net cost of scrap Product recalls Systems development Warranty repairsFor each of the quality costs shown below, what is the amount of the cost as a percent of the total sales? The rst column of answers relates the first quarter and the second column relates to the second quarter. (Round your answers to 1 decimal place.) Customer returns of defective goods Downtime due to quality problems Quality engineering Rework labor Statistical process control Warranty repairs