How much spoilage or shrinkage cost should a corp charge

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Problem 1: In manufacturing the Job 250914 for the month of March, A Co. incurred abnormal production shrinkage of $ 500 and spoilage due to internal failure of $10,000. The number of units affected and undeliverable is 100 units. If job order 250914 originally consist of 900 units with cost per unit of : Direct materials is 30 per unit; Direct labor of 50 per unit and overhead of 50% of DL per unit. How much spoilage/shrinkage cost should A Corp charge to Factory Overhead Control for the month of March?

Reference no: EM132738877

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