Versatile Electrics manufactures electrical instruments for a variety of purposes. The following costs, related to maintaining product quality, were incurred in May:

Inspection of electrical components purchased from outside suppliers	$24,000
Costs of rework on faulty instruments	38,000
Replacement of instruments sold that were still under warranty	85,000
Costs of defective parts that cannot be salvaged	12,000
Training of quality control inspectors	10,000
Tests of instruments before sales	20,000

Required:

1. Calculate each of the four categories of quality costs as a percentage of the total quality costs. (4 marks)

2. Comment on the relative proportions of the four categories of quality costs and suggest ways in which the company could reduce its quality costs. (2 marks)