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 anw 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 Category Machining Assembly Setup labor Packaging Compliance testing Total Amount $ 688,000 488,888 688,000 468,000 388,000 $2,640, eee 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 Job 1101 $ 5,200 $ 13,000 260 240 560 Job 1102 $ 6,720 $ 17,920 560 800 760 Job1103 $ 5,750 $ 14,95 460 360 660 DEO 10 of 10 SH: Next Machine hours Production runs Compliance testing required? 560 1 Yes 760 2 No 660 1 Yes Lillis is considering adopting an activity-based costing system. The cost analyst has studied the system and has recommended the following cost drivers for each of the overhead categories. She has also estimated the annual volume for each of the cost drivers. This information follows Overhead Category Cost Driver Annual Cost Driver Volume Machining Machine hours 34,400 machine-hours Assembly Direct-labor hours 16,000 direct-labor hours Setup labor Production runs 80 production runs Packaging Units 312,000 units Compliance testing Orders tested 20 orders tested The average direct labor rate at Lillis is $55 per hour Required: a. What is the unit cost for each of the three jobs started and completed assuming Lillis uses their current costing system? (Round your answers to 2 decimal places.) b. What is the unit cost for each of the three jobs started and completed assuming Lillis adopts the ABC system as designed by the cost analyst? (Do not round intermediate calculations. Round your final answers to 2 decimal places.)