Barbara Speiss, regional manager of Candy Heaven, is evaluating the performance of four candy kitchens in her region. In accordance with the company's costs-of-quality standards of performance, the four locations provided the following data for the past six months:

Required
1. For each location, compute the percentages of sales represented by prevention costs, appraisal costs, total costs of conformance, internal failure costs, external failure costs, total costs of nonconformance, and total costs of quality.
2. For each location, calculate the ratio of costs of conformance to costs of quality and the ratio of costs of nonconformance to costs of quality.
3. Accounting Connection –¶ Interpret the cost-of-quality data for each location. Rank the locations in terms of quality.

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Alta Provo Copper Sales Prevention costs Appraisal costs Internal failure costs External failure costs Total costs of quality $1,800,000 1,500,000 1,400,000 1,200,000 16,000 20,000 25,000 30,000 25,000 $100,000 32,000 S 42,000 24,000 33,000 $131,000 48,000 S 32,000 21,000 16,000 18,000 42,000 45,000 $121,000 $117,000