Lola Corporation has two departments that produce two separate product lines. The company has been implementing total quality management over the past year. Revenue and costs of quality for that year follow.

Which department is taking a more serious approach to implementing TQM? Base your answer on the following computations.
1. Total costs of quality as a percentage of sales
2. Ratio of costs of conformance to total costs of quality
3. Ratio of costs of nonconformance to total costs of quality
4. Costs of nonconformance as a percentage of sales

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Dept. R Dept.Q Totals Annual sales Costs of quality: $10,200,000 $10,000,000 $20,200,000 Prevention costs Appraisal costs Internal failure costs External failure costs $ 106,000 104,001 194,000 144,000 $ 548,001 $ 204,500 99,999 97,500 310,500 204,000 291,500 204,000 1,010,000 Totals $ 461,999