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 in total cost of quality over the two$-$year period.

$4-$b$.$ Is performance trending in a favorable or unfavorable direction?