(Defective units and rework) Hoffus Corporation produces plastic pipe andaccounts for its production process using weighted average process costing.Material is added at thebeginning of production. The company applies overhead to products using machine hours. Hoffus Corporation used the followinginformation in setting its predetermined overhead rate for 2000:

Expected overhead other than rework	$425,000
Expected rework costs	37,500
Total expected overhead	$462,500
Expected machine hours for 2000	50,000

During 2000, the following production and cost data were accumulated:

Total good production completed	2,000,000 feet of pipe
Total defects	40,000 feet of pipe
Ending inventory (35% complete)	75,000 feet of pipe
Total (beginning inventory and current period) cost of direct material	$3,750,000
Total (beginning inventory and current period) cost of conversion	$5,650,000
Cost of reworking defects	$ 37,750

Hoffus Corporation sells pipe for $3.50 per foot.

a. Determine the overhead application rate for 2000.

b. Determine the cost per pipe-foot for production in 2000.

c. Assume that the rework is normal and those units can be sold for the regular selling price. How will Hoffus Corporation account for the $37,750 ofrework cost?

d. Assume that the rework is normal, but the reworked pipe is irregular and can only be sold for $2.50 per foot. Prepare the journal entry to establish the inventory account for the reworked pipe. What is the total cost perunit for the good output completed?

e. Assume that 20 percent of the rework is abnormal and that all reworked output is irregular and can be sold for only $2.50 per foot. Prepare thejournal entry to establish the inventory account for the reworked pipe.What is the total cost per foot for the good output completed during 2000?