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:

Last YearThis YearPrevention costs$ 357,000$ 695,500Appraisal costs$ 409,400$ 594,100Internal failure costs$ 869,000$ 545,000External failure costs$ 1,078,000$ 659,600

Required:

1. Calculate the total cost of quality last year and this year.

2. For last year, calculate the cost in each of the four categories as a percent of the total cost of quality.

3. For this year, calculate the cost in each of the four categories as a percent of the total cost of quality.

4-a. Calculate the change in total cost of quality over the two-year period.

4-b. Is performance trending in a favorable or unfavorable direction?