3. Carnival Cards custom designs and prints greeting cards based on individual customer needs and a set of standardized options. The company uses job costing to record and control costs. Yesterday, one of the company's paper cutting machines broke down while working on a job for a client. The client ordered the premium option on the cards, and the production manager's adjustment of the cutting machine caused the knife to dull prematurely, ruining 400 out of 5,000 cards. Total cost of the order was Direct materials Direct labour Overhead $4,500 $6,450 $8,200 The customer agreed to have the price of the original order reduced to accommodate the reduction in quantity delivered, and the spoiled cards were destroyed. Assuming normal spoilage is 10% of production for the premium option, which of the following journal entries correctly records the cost of the spoiled job? a) No entry required b) DR Work-in-process 1,532 CR Manufacturing overhead control 1,532 c) DR Manufacturing overhead control 876 CR Work-in-process 876 d) DR Spoilage 1,532 CR Work-in-process 1,532