Refer to the information in Exercise 19-25 in answering the following requirements. There is no connection between the requirements.
In Exercise 19-25

REQUIRED
1. Mayfield produces 2,000 defective units at the machining operation. What is the cost to
Mayfield of the defective items produced? Explain your answer briefly.
2. Mayfield produces 2,000 defective units at the finishing operation. What is the cost to
Mayfield of the defective items produced? Explain your answer briefly.

Transcribed Image Text:

Finishing Annual capacity Annual production Fixed operating costs Machining 100,000 units 80,000 units 80,000 units 80,000 units excluding direct materials) S640,000 S400,000 Fixed operating costs per unit produced (S640,00080,000; S400,00080,000) $8 per unit S5 per unit