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Exercise 12-8 (Algo) Cost of Quality (L012-2] Tulsi Gabbard Ltd has measured its quality costs for the past two years. After the company gathers its quality cost data, it summarizes those costs using the four categories shown below: Prevention costs Appraisal costs Internal failure costs External failure costa Last Year $ 339,200 $ 467,300 $ 853,200 $1,001,000 This Year $ 637,000 $ 496,000 $ 545,000 $ 734,400 Required: 1. Calculate the total cost of quality last year and this year. Last Year This Year Total cost of quality 2. For last year, calculate the cost in each of the four categories as a percent of the total cost of quality. (Round your percentage answers to 1 decimal place.) Last Year % % Prevention costs Appraisal costs Internal failure costs External failure costs Total percent % % % 3. For this year, calculate the cost in each of the four categories as a percent of the total cost of quality. (Round your percentage answers to 1 decimal place.) Prevention costs Appraisal costs Internal failure costs External failure costs Total percent This Year % % % % % 4a. Calculate the change in total cost of quality over the two-year period. Prevention and appraisal activities Internal and external failure costs The total cost of quality 4b. Is performance trending in a favorable or unfavorable direction? Favorable Unfavorable