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.

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?