Question
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
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 | $ 637,000 |
Appraisal costs | $ 467,300 | $ 496,000 |
Internal failure costs | $ 853,200 | $ 545,000 |
External failure costs | $ 1,001,000 | $ 734,400 |
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?
Calculate the total cost of quality last year and this year. For last year, calculate the cost in each of the four categories as Note: Round your answers to 1 decimal place. For this year, calculate the cost in each of the four cates Note: Round your answers to 1 decimal place. Calculate the change in total cost of quality over the two-year period. Is performance trending in a favorable or unfav
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