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...
View Full Document
This note was uploaded on 07/16/2011 for the course COST ACCOU 410 taught by Professor David during the Fall '10 term at Kaplan University.
- Fall '10