Unformatted text preview: Hi Linda, if the defective units arise from the production process for the specific job (higher quality standards, lower tolerances, etc.), the cost to rework the defective units is not included in the pre-determined overhead rate; therefore, the cost to rework the defective units is added to the work in process account so that the specific job is charged the cost to rework the defective units. Abnormal Spoilage is the cost to rework the abnormal defective units and is treated as an expense for the period. Good post! Jack...
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- Fall '10
- 2006 albums, normal spoilage, defective units, Linda McMahon