- X Requirements Data table 1. Prepare a Cost of Quality (COQ) report. In addition to calculating the total costs Number of units manufactured and sold 2,500 units of each category, calculate the percentage of COQ category of the total COQ. Selling price per unit 2,000 2. Why would the variable repair cost at the customers' home generally be higher than the "in factory" rework cost? Variable manufacturing and selling costs per unit 1, 100 3. How can use of the COQ report lead to improvements in the production process Hours spent by engineers improving design 1, 100 or in the quality of the product itself? Testing and inspection hours per unit 0.5 hours Percentage of units reworked in the plant after inspection . . 7% Average variable rework costs per freezer 300 Percentage of units repaired under warranty at customers' homes . . . . . . . 9% Average variable repair costs at customers' homes per freezer . . .. .. .. 400 Estimated lost sales due to quality .reputation . . . 550 units Design engineer's labor rate (includes benefits and payroll taxes) . . .... . $100 per hour Inspection costs per hour $30 per hour