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		$	339,200		$	702,000
Appraisal costs		$	485,100		$	599,500
Internal failure costs		$	774,200		$	470,000
External failure costs		$	1,177,000		$	652,800

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

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.)

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

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

multiple choice

• Favorable

• Unfavorable