Problem $6$

ATP Inc. manufactures high$-$quality calculators for use by accounting students around the globe. During

December, ATP produces Job $111$ which consists of $1,000$ calculators. Production and sales data for Job $111$

follows:

ATP discovers prior to shipping Job $111$ that $20$ of the units are defective. These $20$ units are reworked by adding

an additional $$7$ of direct materials and $$3$ of direct labor per unit. ATP also uses an additional $10$ machine hours

for the $20$ units during rework.

A$.$ What is ATP's total manufacturing cost for Job $111$ prior to rework?

B$.$ Did the rework of $20$ defective units impact the total cost of Job $111?$

C$.$ If so$,$ what would the new costs of Job $111$ be after rework? If not, then skip to part $D.$

D$.$ Of the $4$ types of quality costs discussed in class, which type of cost is rework?