XYZ Company has identified the following overhead activities, costs and activity drivers for the coming year.

Activity Expected Cost Activity Driver Activity Capacity

Material handling Cost ........... $45,000 Number of Moves .........................................450

Machine Costs..............................80,000 Machine Hours ........................................20,000

Order Costs...................................15,000 Number of orders...........................................750

Recieving Costs...........................30,000 Number of Parts........................................50,000

Setup Costs...................................50,000 Number of setups...........................................250

Assume that each activity corresponds to a process. XYZ's normal activity is 5,000 direct labour hours. The following two jobs were completed during March.

Job X-1 Job Y-4

Direct materials....................................................................$1,500 $2,000

Direct Labour ($15 per hour)............................................. $750 $750

Units Completed..................................................................... 200 200

Number of Moves.................................................................. 3 6

Machine Hours...................................................................... 125 75

Number of orders................................................................. 3 12

Number of Parts.................................................................... 200 800

Number of Setups................................................................ 1 4

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 activity drivers to apply overhead.