A manufacturing compay produces several different custom items, and uses a job costing system. Overhead is applied to jobs using a POHR based on direct labor cost. Overhead is estimated to be: Category Amount Machining $ 544,000 Assembly 344,000 Setup labor 464,000 Packaging 324,000 Compliance testing 244,000 Total $1,920,000 The jobs for September were: Direct materials Direct labor Number of units Direct labor hours Machine hours Production runs Compliance testing required? Job 1582 $ 4,600 $ 11,500 230 240 530 1 Yes Job 1583 $ 6,360 $ 16,960 530 800 730 2 No Job 1584 $ 5,375 $ 13,975 430 360 630 1 Yes The company may decide to use an ABCsystem. The cost accountant has determined the cost drivers and the annual volume for each: Overhead Category Machining Assembly Setup labor Packaging Compliance testing Cost Driver Machine hours Direct-labor hours Production runs Units Orders tested Annual Driver Volume 27, 200 machine-hours 16,000 direct-labor hours 80 production runs 216,000 units 20 orders tested The average direct labor rate at Lillis is $40 per hour. Required: a. What is the unit cost for each of the jobs assuming the company uses the POHR to allocate overhead ? (Round your answers to 2 decimal places.) b. What is the unit cost for each of the jobs assuming they adopt the ABC system? (Do not round intermediate calculations. Round your final answers to 2 decimal places.) Unit Cost Job 1101 Job 1102 Job 1103 a. Using the current costing system Using the ABC system b