QUESTION 8 Gemstones R' Us currently uses a traditional costing system to allocate MOH based on direct labor hours. The comparty 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 related to activity Total estimated amount 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 4000 test runs Facility level costs $120,000 50,000 DLHS Total MOH $1,650,000 The job cost record for Job #606 states that direct materials for the job tolaled $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 lob #606 included: 1 machine setup 5 machine hours 2 polishing clothes . 2 quality control test runs 10 direct labor hours The total amount of MOH allocated to Job #606 using an ABC costing method is: a. $1,630 Ob. 3330 O $2,415 O d. $1,115