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Exercise 12-8 (Algo) Cost of Quality [LO12-2] Walton Company 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 costs Last Year $ 324,900 $ 409,400 $ 869,000 $1,188,000 This Year $ 689,000 $ 545,000 $ 550,000 $ 673,200 Required: 1. Calculate the total cost of quality last year and this year. Last Year This Year $ 2,791,300 $ 2,457,200 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.) Prevention costs Appraisal costs Internal failure costs External failure costs Last Year 11.6% 14.7% 31.1 % 42.6% 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 28.01% 22.2 % 22.4% 27.4% 100.0% 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 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