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 Year			This Year
Prevention costs		$	332,000		$	663,000
Appraisal costs		$	471,700		$	572,300
Internal failure costs		$	758,400		$	505,000
External failure costs		$	1,144,000		$	673,200

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. (Round your percentage answers to 1 decimal place.)

- 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

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

- Prevention and Appraisal Activities

- Internal and External Failure Costs

- Total Cost of Quality

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

multiple choice

• Favorable

• Unfavorable