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. Activity Cost Quality Cost Classification Quality Control Activities Value-Added/ Non-Value-Added Classification Non-value-added Billing error correction $21,000 49,000 External failure Appraisal Cable signal testing Value-added Reinstalling service installed incorrectly the first time) 45,200 External failure Non-value-added 21,000 Internal failure Non-value-added 13,700 External failure Non-value-added Repairing satellite equipment Repairing underground cable connections to the customer Replacing old technology cable with higher quality cable 73,500 Prevention Value-added 84,000 Prevention Value-added Replacing old technology signal switches with higher quality switches Responding to customer home repair requests 25,100 External failure Non-value-added Training employees 17,500 Prevention Value-added Total activity cost $350,000 Feedback Check My Work Correct b. Prepare a cost of quality report. Assume that sales are $1,400,000. If required, round percentages to one decimal place. Three Rivers Inc. Cost of Quality Report Quality Cost Percent of Total Quality Cost Percent of Total Sales Quality Cost Classification Prevention Appraisal Internal failure External failure Total Feedback Check My Work b. Classify each activity as either prevention, appraisal, internal failure or external failure. List the total costs of each of these categories by the total quality cost. In another column, determine the percent of each quality cost classification as compared Learning Objective 1 and Learning Objective 3. 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