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. Category Machining Assembly Setup labor Packaging Compliance testing Total Amount $ 448,000 248,000 368,000 228,000 148,000 $1,440,000 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 Job 1102 $ 4,200 $ 6,120 $ 10,500 $ 16,320 210 510 240 800 510 710 1 2 Yes No Job1103 $ 5,125 $ 13, 325 410 360 610 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. 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 Machining Assembly Setup labor Packaging Compliance testing Cost Driver Machine hours Direct-labor hours Production runs Units Orders tested Annual Cost Driver Volume 22,400 machine-hours 16,000 direct-labor hours 80 production runs 152,000 units 20 orders tested The average direct labor rate at Lillis is $30 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.) Unit Cost Job 1101 Job 1102 Job 1103 a. Using the current costing system Using the ABC system b