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 Cost Classification Quality Control Activities Value-Added/ Non-Value-Added Classification Activity Cost $38,300 External failure Billing error correction Non-value-added Cable signal testing 99,400 Appraisal Value-added Reinstalling service (installed incorrectly the first time) 82,400 External failure ?Non-value-added Repairing satellite equipment 28,400 Internal failure Non-value-added Repairing underground cable connections. 24,900 External failure Non-value-added to the customer Replacing old technology cable with higher quality cable 164,000 Prevention Value-added Replacing old technology signal switches with higher quality switches 187,400 Prevention Value-added Responding to customer home repair requests 46,100 External failure ?Non-value-added Training employees 39,100 Prevention Value-added Total activity cost $710,000 ? eBook Show Me How Print tem 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 Classification Percent of Total Quality Cost Percent of Total Sales Prevention % Appraisal % Internal failure % External failure % % Total % % Check My Work 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 Feedback Quality Cost % % %