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:

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?

PreventioncostsAppraisalcostsInternalfailurecostsExternalfailurecostsLastYear$332,000$471,700$758,400$1,144,000ThisYear$663,000$572,300$505,000$673,200