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
Operating Income