eBook Show Me How Print Item 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. Quality Control Activities Billing error correction Cable signal testing Reinstalling service (installed incorrectly the first time) Activity Quality Cost Classification Cost $38,300 External failure 99,400 Appraisal Value-Added/ Non-Value-Added Classification Non-value-added Value-added Non-value-added 82,400 External failure Repairing satellite equipment 28,400 Internal failure Non-value-added. Repairing underground cable connections to the customer 24,900 External failure Non-value-added Replacing old technology cable with higher quality cable 164,000 Prevention Value-added Replacing old technology signal switches with higher quality switches Responding to customer home repair requests Training employees Total activity cost 187,400 Prevention Value-added 46,100 External failure Non-value-added 39,100 Prevention $710,000 Value-added eBook Show Me How Print Item b. Prepare a cost of quality report. Assume that sales are $3,550,000. If required, round percentages to one decimal place. Three Rivers Inc. Cost of Quality Report Quality Cost Quality Cost Percent of Total Percent of Classification Quality Cost Total Sales Prevention Appraisal % % Internal failure 94 External failure % 94 Total % % Foodback Check My Work c. Prepare a value-added/non-value-added analysis. Three Rivers Inc. Value-Added/Non-Value-Added Category Activity Analysis Value-added Non-value-added Total Amount Percent % % %