Total costs of conformance for each year

Question

Problem:

Precise had sales of 18,000,000 in both Year 2 and Year 1, and incurred the following costs related to quality control during those years:

                                               Year 2        Year 1

Inspection                                61000         30000
Quality Engineering                   57000         12000
Quality training programs          26000         39000
customer Allowances                 22000        104000
Scrap, net                                25000           8000
Product testing                          92000         42000
Rework                                   130000         68000
Statistical process control           50000         34000
Downtime due to defects            25000         18000
Warranty repairs                       75000        189000
Field Service                             45000        143000
Testing Supplies                        15000          16000

Question 1: Categorize the costs and compute the total costs of conformance for each year by category.

Question 2: Evaluate the distribution of quality costs at Precise. Discuss the distribution of quality costs and any trends in cost distribution. What effect does the distribution of quality costs have on total quality at Precise? Explain.

Question 3: What future trends should Precise expect if the current focus of quality programs continues? Explain.