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Problem 9-66 (Algo) Activity-Based Costing of Jobs (LO 9-5, 6) Miller Manufacturing (2M) makes a variety of components for mechanized agricultural equipment. The products are

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Problem 9-66 (Algo) Activity-Based Costing of Jobs (LO 9-5, 6) Miller Manufacturing (2M) makes a variety of components for mechanized agricultural equipment. The products are similar but not identical, and all go through many of the same processes. 2M sells products worldwide and has to comply with various regulations regarding environmental and health and safety compliance. For the most part, 2M manufacturing practices comply with or exceed requirements in the countries to which it ships its products, but depending on the specific part ordered, it might have to go through additional certification processes to make the sale. The company produces to order and never has any work-in-process inventories. The manufacturing facility uses a job costing system for product costing. Manufacturing overhead is applied to jobs based on direct labor cost. The cost analyst at 2M recently put together an estimate of overhead for the coming year, which is shown in the following table: The following are estimates for the three jobs planned for March: The following are estimates for the three jobs planned for March: 2M 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. The analyst has also estimated the onnual volume for each of the cost drivers. This information follows. The average direct labor rate at 2M is $40 per hour. Required: The average direct labor rate at 2M is $40 per hour. Required: a. What is the unit cost for each of the three jobs started and completed assuming 2M uses its current costing system? Note: Round your answers to 2 decimal places. b. What is the unit cost for each of the three jobs started and completed assuming 2M adopts the ABC system as designed by the cost andyst? Note: Do not round intermediate calculations. Round your final answers to 2 decimal ploces

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