Problem 5 - Materials Cost - Accounting for Defective Work A job order for 1,000 pairs of carved wooden bookends is processed and prime costs are as follows: Direct materials Direct labor P 30,000 20,000 Factory overhead rate of 50% of direct labor cost excludes a 2% provision for defective work. Prior to transfer to stockroom, 50 pairs are found defective and are reprocessed. Prime costs in reprocessing amount to P 800 (direct materials of P 200 and direct labor of P 600). Questions: a. Assuming that the job is a regular or standard one, (1) what factory overhead rate must be used? (2) what must be the unit cost for the 1,000 pairs of bookends upon completion? (3) what are the entries to take up the original production cost, spoilage and completion of the job? b. Assuming that the job is a special one, what would be your answers for the questions given above?