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 $ 357,000 $ 650,000 Appraisal costs $ 445,000 $ 545,000 Internal failure costs $ 790,000 $ 500,000 External failure costs $ 1,100,000 $ 680,000 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 Part 1. Calculate the total cost of quality last year and this year? Last Year? This Year? Part 2: For last year, calculate the cost in each of the four categories as a percent of the total cost of quality. Note: Round your answers to 1 decimal place. Last Year Prevention costs % Appraisal costs % Internal failure costs % External failure costs % Total percent 0.0 % Part 3: For this year, calculate the cost in each of the four categories as a percent of the total cost of quality. Note: Round your answers to 1 decimal place. This Year Prevention costs % Appraisal costs % Internal failure costs % External failure costs % Total percent Part 4 A 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 Is performance trending in a favorable or unfavorable direction?
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