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. Amount Category Machining Assembly Setup labor Packaging Compliance testing 400,eee 200,00e 320,eee 180,eee 100, $1,200,00e Total Three jobs were started and completed in November. Details on the jobs follow. Job1103 Job 1101 Job 1102 $5,eee $13,000 400 $6,000 $4,e0e Direct materials Direct labor $16,eee $10,eee 500 200 Number of units 360 800 240 Direct labor hours Machine hours Production runs Compliance testing required? 600 700 500 2. 1 Yes No 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 Machining Assembly Setup labor Packaging Compliance testing Cost Driver Machine hours Direct-labor hours Production runs Annual Cost Driver Volume 20,0e0 machine-hours 16,000 direct-labor hours 8e production runs Units 120,eee units Orders tested 20 orders tested The average direct labor rate at Lillis is $25 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