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