Telfar Corp. has the following information related to quality costs.

Amount $/$ Rate

Units produced and sold $186,000$

$\%$ units reworked $6\mathrm{.}0\%$

$\%$ of units returned by customers $2\mathrm{.}5\%$

Scheduled testing & inspection of equipment $70$ hours

Breakdown equipment maintenance $180$ hours

Product design $500$ hours

Cost of testing & inspections per hour $$100$ per hour

Cost of rework units $$12$ per unit

Cost of customer returns $$60$ per unit

Maintenance cost per hour $$50$ per hour

Product design cost per hour $$125$ per hour

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 management$$s attention regarding quality and costs.