29 is C, why? detail please.

Sparky Cosmetics has used a traditional cost accounting system to apply quality control costs for inspections uniformly to all products at a rate of 14.5% of direct labor cost. Monthly direct labor cost for Satin Sheen makeup is $27,500. Sparky is considering activity-based costing to improve their product cost information. The monthly data shown in the cart below have been gathered for Satin Sheen makeup. The monthly quality control cost assigned to Satin Sheen makeup using activity-based costing is: $88.64 per order $525.50 lower than the cost using the traditional system $525.50 higher than the cost using the traditional system $3,987.50