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		$	321,300		$	591,500
Appraisal costs		$	405,000		$	528,700
Internal failure costs		$	758,400		$	450,000
External failure costs		$	1,177,000		$	734,400

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

	Last Year	This year
Total Cost of quality

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.)

	Last year
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.)

	this year	%
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
the total cost of quality

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

• Favorable

• Unfavorable