When Abnormal Rework Is Distinguished from Normal Rework, and Charged

When abnormal rework is distinguished from normal rework, and charged to a separate loss account, which of the following is a likely result?

A) Prices will have to increase on the company's products accordingly.
B) If responsibility for normal spoilage expense is penalized less heavily than the unfavourable efficiency variances arising from rework, then managers will tend to rework too many spoiled units.
C) If responsibility for abnormal spoilage expense is penalized less heavily than the unfavourable efficiency variances arising from rework, then managers will tend to rework too many spoiled units.
D) If responsibility for normal spoilage expense is penalized more heavily than the unfavourable efficiency variances arising from rework, then managers will tend to rework too many spoiled units.
E) If responsibility for abnormal spoilage expense is penalized more heavily than the unfavourable efficiency variances arising from rework, then managers will tend to rework too many spoiled units.

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