Darden Manufacturing, a calendar-year corporation, had $17,000 of spoilage during April
that production management characterized as abnormal. The spoilage was incurred on Job
No. 532, which was sold 3 months later for $459,000. Which of the following correctly
describes the impact of the spoilage on Darden’s unit manufacturing cost for Job No. 532
and on the year’s operating income?
Unit Manufacturing Cost