Question 3 New-Rage Cosmetics has used a traditional cost accounting system to apply quality control costs uniformly to all products at a rate of 20% of direct labor cost. Monthly direct labor cost for Satin Sheen makeup is $27,500. In an attempt to more equitably distribute quality control costs, New-Rage is considering activity-based costing. The monthly data shown in the chart below have been gathered for Satin Sheen makeup. Activity Cost Driver Cost Rates Quantity for Satin Sheer Incoming material Type of $11.50 per 12 types inspection materia type In-Process Units Number of $0.14 per 17,500 units Inspection Units Unit Product Certification Per order $77 per 25 orders Order The monthly quality control cost assigned to Satin Sheen makeup using activity-based costing is: O a) $220 per order. O b) $987 lower than the cost using the traditional system. O c) $987 higher than the cost using the traditional system o d) $5,500 per order O e) $138 per order