Question 2 Elin Saunders, of Lawn Pro Company, designs and installs custom lawn and garden imigation systems for homes and businesses throughout the province. Each job is different, requiring different materials and labour for installing the systems. Lawn Pro estimated the following for the year. Number of installations Number of direct labour hours Direct materials cost Direct labour cost Overhead cost 340 5 440 R102 000 R54 400 R59 840 During the year, the following actual amounts were experienced Number of installations Number of direct labour hours Direct materials cost Direct labour cost Overhead cost 290 4 350 R87 000 R43 500 R53 460 Required: 2.1 Should Lawn Pro use process costing or job costing? Explain. 22 If Lawn Pro uses a normal costing system and overhead is applied on the basis of direct labour hours, calculate the cost on an installation that takes R3 500 of direct materials and 30 direct labour hours. 2.3 Explain why Lawn Pro would have difficulty using an actual costing system