Vince Kim, owner of EcoScape, noticed that the watering systems for many houses in a local subdivision had the same layout and required virtually identical amounts of prime cost. Vince met with the subdivision builders and offered to install a basic watering system in each house. The idea was accepted enthusiastically, so Vince created a new company, Irrigation Specialties, to handle the subdivision business. In its first three months in business, Irrigation Specialties experienced the following: June July August Number of systems installed 68 88 108 Direct materials used $17,952 $23,232 $28,512 Direct labor incurred $11,968 $15,488 $19,008 Overhead $10,771.20 $10,841.60 $11,404.80 Required: 1. Should Irrigation Specialties use process costing or job-order costing? 2. If Irrigation Specialties uses an actual costing system, what is the cost of a single system installed in June? In July? In August? Round your answers to the nearest dollar. June per system July per system August per system 3. Now assume that Irrigation Specialties uses a normal costing system. Estimated overhead for the year is $77,000, and estimated production is 700 watering systems. What is the predetermined overhead rate per system? per system installed What is the cost of a single system installed in June? In July? In August? June $ per system July $ per system August per system