Walton Company measured its quality costs for the past two years and summarized those costs using the four categories shown below:

	Last Year	This Year
Prevention costs	$ 392,700	$ 708,500
Appraisal costs	$ 413,900	$ 550,500
Internal failure costs	$ 821,600	$ 465,000
External failure costs	$ 1,122,000	$ 632,400

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.

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?