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The spoilage was incurred on Job No.532, which was sold3 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 - OperatingIncome.
A. >>>>>>>>>> Increase - No effect
B. >>>>>>>>>> Increase - Decrease
C. >>>>>>>>>> No effect - Decrease
D. >>>>>>>>>> No effect - Not enough information to judge
C- The unit cost should not be changed, the operating income will be decreased since all the abnormal costs will be treated as period cost.
B. >>>>>>>>>> Increase - Decrease
