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: Prevention costs Appraisal costs Internal failure costs External failure costs Last Year $ 332,000 $ 480,600 $ 813,700 $1,155,000 This Year $ 669,500 $ 496,000 $ 535,000 $ 625,600 Required: 1. Calculate the total cost of quality last year and this year. Last Year This Year Total cost of quality $ 2,781,300 $ 2,326,100 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 11.9% 17.3% Prevention costs Appraisal costs Internal failure costs External failure costs 29.3% 41.5 % Total percent 100.0 % 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 28.8% Prevention costs Appraisal costs 21.3 % Internal failure costs 23.0 % External failure costs 26.9% 100.0 % Total percent 4a. Calculate the change in total cost of quality over the two-year period. $ 337,500 X Increased Prevention and appraisal activities Internal and external failure costs The total cost of quality $ (278,700) Decreased $ 455,200 Decreased 4b. Is performance trending in a favorable or unfavorable direction? Favorable