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 costs of Three 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 $37,900 Cable signal testing 142,200 Reinstalling service (installed incorrectly the first 81,500 time) Repairing satellite equipment Repairing underground cable connections to the 24,600 customer Replacing old technology cable with higher quality 172,500 cable Replacing old technology signal switches with higher 197,200 quality switches 47,400 Responding to customer home repair requests 45,600 Training employees 41,100 Total activity cost $790,000 b. Prepare a cost of quality report. Assume that sales are $3.950,000. If required, round percentages to one decimal place. Three Rivers Inc. Cost of Quality Report Quality Cost Percent of Total Quality Cost Percent of Total Sales Quality Cost Classification Prevention Appraisal Internal failure External failure Total c. Prepare a value-addedon-value-added analysis. Three Rivers Inc. Value-Added/Non-Value Added Activity Analysis Category Amount Percent Value-added % Non-value-added 96 Total % d. What percentage of total costs of quality are considered to be value-added