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Cost of Quality and Value Added/Non-Value Added Reports for a Service Company Three Rivers Inc, provides cable TV and Internet service to the local community.

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Cost of Quality and Value Added/Non-Value Added Reports for a Service Company Three Rivers Inc, provides cable TV and Internet service to the local community. The activities and activity ee Rivers are identified as follows: a. Identify the cost of quality classification for each activity and whether the activity is value-added or non-value-added. Value Added/ Activity Quality Cost Non-Value-Added Quality Control Activities Cost Classification Classification Billing error correction $40,800 Cable signal testing 108,800 Reinstalling service (installed incorrectly the first time) Repairing satellite equipment 34.000 Repairing underground cable connections to the 26,500 customer Replacing old technology cable with higher 139.900 quality cable Replacing old technology signal switches with 159.900 higher quality switches Responding to customer home repair requests 49,000 Training employees 33.400 Total activity cost 5680.000 87,700 b. Prepare a cost of quality report. Assume that sales are $3.400.000. If required, round percentages to one decimal place Three Rivers Inc. Cost of Quality Report Quality Cost Percent of Total Percent of Quality Cost Total Sales Quality Cost Classification Total activity cost $680,000 b. Prepare a cost of quality report. Assume that sales are $3,400,000. If required, round percentages to one decimal place. Three Rivers Inc. Cost of Quality Report Percent of Total Percent of Quality Cost Quality Cost Total Sales Quality Cost Classification % % % 9 Prevention Appraisal Internal failure External failure Total % % 96 9 c. Prepare a value-addedon-value-added analysis. Three Rivers Inc. Value Added/Non-Value Added Activity Analysis Category Amount Percent Value-added 90 Non-value-added 9 Total 90 d. What percentage of total costs of quality are considered to be value-added

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