QUESTION 10 Gemstones R' Us currently uses a traditional costing system to allocate MOH based on direct labor hours. The company is contemplating adopting an ADC costing system. The following manufacturing activities, indirect manufacturing costs, and cost drivers have been identified: ACTIVITY Total estimated MOH COSES Total estimated amount of related to activity allocation base activity Machine setup $120,000 2.000 setups Machining $1,050,000 6,000 MH'S Polishing S80,000 10,000 polishing cloths Quality control $280.000 4,000 test runs Facility level costs $120,000 50.000 DLHY Total MOH $1,650,000 The job cost record for Job #606 states that direct materials for the job totaled $1,050 and that direct labor totaled 10 hours at a wage rate of $25 per hour Other data collected on the resources used by Job 606 included: 1 machine setup 5 machine hours 2 polishing cloths 2 quality control test runs 10 direct labor hours If Gemstones R' Us sells their products at 140% of cost, what is the gross profit on Job #606 using the ABC costing method: O a $1,099 O b. $652 O $966 O d. $1,751