Spokane Corp. has the following information related to costs of quality.

a. Prepare a Cost of Quality report that classifies the costs above into the appropriate COQ category.

b. Using the results of the Cost of Quality report you prepared above, what is the most important concern that needs managements attention regarding quality and costs.

Unitsproducedandsold%unitsreworked%ofunitsreturnedbycustomersScheduledequipmenttestingBreakdownequipmentmaintenanceProductRedesignCostofreworkunitsCostofcustomerreturnsMaintenance&testingcostperhourProductdesigncostperhour$18/hr.Amount/Rate120,0006.0%2.5%60hours180hours480hours$14perunit$30perunit$96/hr