The Omega Company manufactures customized motors on a job-order basis. Job 492 is an order...
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The Omega Company manufactures customized motors on a job-order basis.
Job 492 is an order for 100 units. It requires the following:
direct materials $3,000
direct labor ($10/hr) 1,000
overhead (150% DL$) 1,500
After inspection, 2 units required rework which required 8 additional direct labor hours and $60 of materials.
If the rework is considered abnormal spoilage, what is the cost of job 492?
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