Spoilage costs allocated to completed units are larger by which method and by how much?

Question

Quizplus · Accepted Answer

Allocating spoilage costs to completed units means adding the cost of spoiled units to the cost of completed units, resulting in a higher cost per unit. Therefore, recognizing spoiled units by a higher amount ($7,500) will result in larger spoilage costs allocated to completed units than recognizing them by a lower amount ($2,500 or $4,250) or ignoring them altogether.

Spoilage Costs Allocated to Completed Units Are Larger by Which