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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

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 $ 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 in total cost of quality over the two-year period.
4-b. Is performance trending in a favorable or unfavorable direction?

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