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$357,000$695,500

Appraisal costs$409,400$594,100

Internal failure costs$869,000$545,000

External failure costs$1,078,000$659,600

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?