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Crystal Clear Machine Shop is a manufacturer of motorized carts for vacation resorts. Patrick Cullin, the plant manager of Crystal Coear, obtains the following information
Crystal Clear Machine Shop is a manufacturer of motorized carts for vacation resorts. Patrick Cullin, the plant manager of Crystal Coear, obtains the following information for Job #10 in August 2017. A total of 33 units were started, and 8 spoiled units were detecged and rejected at final inspection, yielding 25 good units. The spoiled units were considered to be normal spoilage. Costs assigned prior to the inspevtion point are $1,250 per unit. Assume that the 8 spoiled units of Crystal Clear Machine Shop's Job #10 can be reworked for a total cost $2,200. A total cost of $10,000 associated with these units has already been assigned to Job #10 begore the rework.
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