eBook 15 14 04A Progress: 1/3 items Assignment Score: 0.0% Show Me How 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 Quality Cost VA/NVA Classification Classification Billing error correction $60,000 Cable signal testing 140,000 Reinstalling service (installed incorrectly the first time) 40,000 Repairing satellite equipment 50,000 Repairing underground cable connections to the customer 25,000 Replacing old technology cable with higher quality cable 175,000 Replacing old technology signal switches with higher quality switches 150,000 Responding to customer home repair requests 30,000 Training employees Total activity cost 80,000 $750,000 b. Prepare a cost of quality report. Assume that sales are $3,000,000. If required, round percentages to one decimal place. Seven Seas Inc. Cost of Quality Report Quality Cost Classification Quality Cost Prevention Percent of Total Quality Cost Percent of Total Sales % % Appraisal % % Internal failure % % External failure % % % % Total c. Prepare a value-added/non-value-added analysis. If required, round percentages to one decimal place. Seven Seas Inc. Value-Added/Non-Value-Added Category Activity Analysis Value-added Non-value-added Total Amount Percent % % d. What percentage of total costs of quality are considered to be value-added? Check My Work 3 more Check My Work uses remaining. Next > Email Instructor Save and Exit Submit Assignment for Grading