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:

Category	Amount
Fabricating	$ 480,000
Machining	960,000
Machine setup	768,000
Shipping	432,000
Certification	240,000
Total	$ 2,880,000

The following are estimates for the three jobs planned for March:

	Job MM03-11	Job MM03-12	Job MM03-13
Direct materials	$ 9,600	$ 14,400	$ 12,000
Direct labor	$ 24,000	$ 38,400	$ 31,200
Number of units	300	750	600
Direct labor hours	360	1,200	540
Machine-hours	750	1,050	900
Setup-hours	15	30	15
Certification required?	Yes	Yes	No

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 annual volume for each of the cost drivers. This information follows.

Overhead Category	Cost Driver	Annual Cost Driver Volume
Fabricating	Direct labor-hour	24,000	direct labor-hours
Machining	Machine-hours	30,000	machine-hours
Machine setup	Setups-hours	1,200	setup-hours
Shipping	Units	180,000	units
Certification	Certifications required	20	certifications required

The average direct labor rate at 2M is $40 per hour.

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 analyst?

Note: Do not round intermediate calculations. Round your final answers to 2 decimal places

Unit cost

	job MM02-11	Job03-12	Job MM03-13
A. using the current costing system
B. using the ABC system