Three Rivers Inc. provides cable TV and Internet service to the local community. The activities and activity costs of Three Rivers are identified as follows: a. Identify the cost of quality classification for each activity and whether the activity is value-added or non-value-added. Quality Control Activities Activity Cost Quality Cost Classification Value-Added/ Non-Value-Added Classification Billing error correction $41,600 Cable signal testing 123,200 Reinstalling service (installed incorrectly the first time) 89,400 Repairing satellite equipment 38,500 Repairing underground cable connections to the customer 27,000 Replacing old technology cable with higher quality cable 168,200 Replacing old technology signal switches with higher quality switches 192,200 Responding to customer home repair requests 49,900 Training employees 40,000 Total activity cost $770,000 b. Prepare a cost of quality report. Assume that sales are $3,850,000. If required, round percentages to one decimal place. Three Rivers Inc. Cost of Quality Report Quality Cost Classification Quality Cost Percent of Total Quality Cost Percent of Total Sales Prevention $ % % Appraisal % % Internal failure % % External failure % % Total $ % %