Under Heller Companys job order cost system, estimated costs of defective work (considered normal in the manufacturing
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Under Heller Company’s job order cost system, estimated costs of defective work (considered normal in the manufacturing process) are included in the predetermined factory overhead application rate. During March 19X2 Job No. 210 for 2,000 hand saws was completed at the following costs per unit. klo78
Final inspection of Job No. 210 disclosed 100 defective saws which were reworked at a cost of $2 per unit for direct labor, plus overhead at the predetermined rate. The defective units on Job No. 210 fell within the normal range. What is the total rework cost and to what account should it be charged?
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Cost Accounting Concepts And Applications For Managerial Decision Making
ISBN: 9780070103108
2nd Edition
Authors: Ralph S. Polimeni, James A. Cashin, Frank J. Fabozzi, Arthur H. Adelberg
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