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| 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 three 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? A. No effect on unit manufacturing cost for Job No. 532; operating income for the year decreased. B. Unit manufacturing cost for Job No. 532 increased; no effect on operating income for the year. C. Unit manufacturing cost for Job No. 532 increased; operating income for the year decreased. D. No effect on unit manufacturing cost for Job No. 532; not enough information to judge the effect on operating income for the year. |