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1 Activities 2 Billing error correction 3 Cable signal testing 4 Reinstalling service (installed incorrectly the first time) 5 Repairing satellite equipment 6 Repairing

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1 Activities 2 Billing error correction 3 Cable signal testing 4 Reinstalling service (installed incorrectly the first time) 5 Repairing satellite equipment 6 Repairing underground cable connections to the customer Activity Cost $31,000.00 100,800.00 29,000.00 39,200.00 20,000.00 7 Replacing old technology cable with higher quality cable 165,000.00 8 Replacing old technology signal switches with higher quality switches 127,000.00 9 Responding to customer home repair requests 15,200.00 10 Training employees 32,800.00 11 Total $560,000.00 Required: a. Identify the cost of quality classification for each activity and whether the activity is value-added or non-value-added. b. Prepare a cost of quality report. Assume that sales are $1,900,000. Round percentages to one decimal place.* c. Prepare a value-added/non-value-added analysis.* d. Interpret the information in (b) and (c). *Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.

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