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Cult 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 low a. Identify the cost of quality classification for each activity and whether the activity is value-added or non-value-added Activity Cost Quality Cost Classification Value Added/ Non Value Added Classification Quality Control Activities Billing error correction 138,300 Cable signal testing 105,500 Reinstalling service (installed incorrectly the first time) 82,300 Repairing satellite equipment 39,600 Repairing underground cable connections to the customer 24,900 Replacing old technology cable with higher quality cable 135,000 Replacing old technology signal swito 155,200 higher quality switches Responding to customer home repair requests 45,900 Training employees 32,400 $500,000 Total activity cost b. Prepare a cost of quality report. Assume that saies are $3,300,000 3 required, round percentages to one decimal place Three Rivers Inc. Cost of Quality Report Quality Cost Percent of Total Percent of Classification Quality Cost Total Sales Preven Appraisal temal failure External failure Quality Cost logy cable with higher quality cable 135,800 Replacing old technology signal switches with higher quality switches 155,200 Responding to customer home repair requests 45,900 Training employees 32,400 Total activity cost $650,000 b. Prepare a cost of quality report. Assume that sales are $3,300,000. If required, round percentages to one decimal place Three Rivers Inc. Cost of Quality Report Quality Cost Quality Cost Percent of Total Percent of Quality Cost Total Sales Classification Prevention Appraisal Internal failure External fallure 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 Total d. What percentage of total costs of quality are considered to be value-added