A company uses a job-order cost system in accounting for its manufacturing operations. Because its processes are labor oriented, it applies manufacturing overhead on the basis of direct labor hours (DLH).Normal spoilage is defined as 4% of the units passing inspection.The company includes a provision for normal spoilage cost in its budgeted manufacturing overhead and manufacturing overhead rate. Data regarding a job consisting of 30,000 units are presented below:

Volume Data:

Total units in job                     30,000

Units failing inspection (spoiled)       1,500

Good units passing inspection        28,500

Cost Data:                                               Per Unit Total Cost

Direct materials                                          $18.00  $540,000

Direct labor 2 DLH @ $16.00/DLH                         32.00    960,000

Manufacturing overhead 2 DLH @ $30.00/DLH            60.00  1,800,000

Total                                                    $110.00 $3,300,000

The 1,500 units that failed inspection required .25 direct labor hours per unit to rework the units into good units.

What is the proper charge to the loss from abnormal spoilage account?

A. $1,440

B. Zero.

C. $4,140

D. $3,450