Lyons, SA, has identified the following overhead costs and activity drivers for next year:

Overhead Item Expected Cost Activity Driver Expected Qty.

Setup costs 150 000 number of setups 1200

Ordering costs 40 000 number of orders 10 000

Maintenance 200 000 machine hours 16 000

Power 20 000 kilowatts hours 100 000

The following are two of the jobs completed during the year:

Job XX job YY

Direct materials 2 250 2 500

Direct labour 3 000 1 875

Units completed 375 300

Direct labour hours 90 110

Number of setups 6 8

Number of orders 8 15

Machine hours 180 150

Kilowatt hours 90 120

The company's normal activity is 20 000 direct labour hours.

Required:

(a) Determine the unit cost for each job using direct labour hours to apply overhead.

(b)Determine the unit cost for each job using the four activity drivers. (Round amounts to 2 decimal places.)

(c) Which method produces the more accurate cost assignment? Why? Explain.