Cost of Quality and Value-Added/Non-Value-Added Reports for a Service Company Seven Seas Inc. provides cable TV and Internet service to the local community. The activities and activity costs of Seven Seas are identified. a. Identify the cost of quality classification for each activity and whether the activity is value-added or non-value-added. Quality Control Activities Activity Cost Billing error correction $25,400 Cable signal testing 90,100 Reinstalling service (installed incorrectly the first time) 54,700 Repairing satellite equipment 21,200 Repairing underground cable connections to the customer 16,500 Replacing old technology cable with higher quality cable 122,400 Replacing old technology signal switches with higher quality switches 139,900 Responding to customer home repair requests 30,600 Training employees Total activity cost 29,200 $530,000 Quality Cost Classification VA/NVA Classification b. Prepare a cost of quality report. Assume that sales are $2,650,000. If required, round percentages to one decimal place.