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Under Heller Company's job order cost system, estimated costs of detective work (considered normal in the manufacturing process) are included in the predetermined factory overhead
Under Heller Company's job order cost system, estimated costs of detective work (considered normal in the manufacturing process) are included in the predetermined factory overhead rate. During March, Job No. 210 for 2.000 hand saws was completed at the following costs per unit Direct materials PS Direct labor 4 Final inspection disclosed Factory overhead (applied at 150% of direct labor cost) 100 defective saws, which P15 were reworked at a cost of P2 per unit for direct labor, plus overhead at the predetermined rate. The defective units fall within the normal range 1. What is the total rework cost? 2. To what account should the rework cost be charged
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