Account for the costs of spoilage and rework.

Your firm uses a job costing system that uses direct labor cost as a cost allocation base for manufacturing overhead. Manufacturing overhead was budgeted at $1,200,000 for the period, and direct labor was budgeted at $3,000,000. One of the jobs your firm worked on during the period was Job 4250, which required direct material costing $40,000 and direct labor costing $25,000 to manufacture 50 units. During the inspection process, it was found that 8 units were defective. Six of these defective units were damaged as a normal part of the production process; 5 of those units could be repaired at a cost of $500 each, while 1 was damaged beyond repair. Two of the defective units had been smashed when a machine malfunctioned; these units were damaged beyond repair