Problem $9-14$: Defective units and rework

JhenaCo produces plastic pipe to customer specifications. Losses of less than $5$ percent are considered normal because they are inherent in the production process. The company applies overhead to product using machine hours. JhenaCo used the following information in setting its predetermined overhead rate for $2018$:

$\backslash$table$[[$Expected overhead other than rework,$P425,000$