Check my Lillis Manufacturing makes a variety of industrial fittings. The products are similar, but not identical, and all go through the same processes. Some orders from Lillis go to companies in regions with strict environmental regulations. Lillis is required to conduct compliance tests on those orders before shipment. The company produces to order and uses a job costing system. Overhead is applied to jobs based on direct labor cost. The cost analyst at Lillis recently put together an estimate of overhead for the coming year, which is shown in the following table. 1 Category Machining Assembly Setup labor Packaging Compliance testing Total Amount $ 688,000 488,000 608,800 468,000 inces 388,800 $2,640,000 Three jobs were started and completed in November. Details on the jobs follow Direct materials Direct labor Number of units Direct labor hours Machine hours Production runs Compliance testing required? Job 1101 $ 5,200 $ 13,000 260 240 560 1 Yes Job 1102 $ 6, 720 $ 17,920 568 800 760 2 No Job 1103 $ 5,750 $ 14,95 460 360 660 1 Yes