3. Time sheets and payroll summaries indicated that the following direct labor costs were incurred:

	Parts Fabrication Department	Assembly Department
Job #1	$1,500	$2,700
Job #2	3,900	3,900
Job #3	5,700	9,900

4. Th e following indirect costs were incurred in each department:

	Parts Fabrication Department	Assembly Department
Labor	$ 4,500	$4,900
Utilities/Fuel	6,900	2,900
Depreciation	11,300	3,500

The labour and utilities/fuel costs were accrued at the time of the journal entry.

Modern Building Solutions builds portable buildings to clients specific cations. The firm has two departments: Parts Fabrication and Assembly.

The Parts Fabrication Department designs and cuts the major components of the building and is highly automated.

The Assembly Department assembles and installs the components, and this department is highly labour intensive. The Assembly Department begins work on the buildings as soon as the floor components are available from the Parts Fabrication Department.

In its first month of operations (March 2010), Modern Building Solutions obtained

contracts for three buildings:

Job 1: a 20- by 40-foot storage building

Job 2: a 35- by 35-foot commercial utility building

Job 3: a 30- by 40-foot portable classroom

Modern Building Solutions bills its customers on a cost-plus basis, with profit t set equal to 35 percent of costs. The firm uses a job order costing system based on normal costs.

Overhead is applied in Parts Fabrication at a predetermined rate of $120 per machine hour (MH).

In the Assembly Department, overhead is applied at a predetermined rate of $17 per direct labour hour (DLH). The following significant transactions occurred in March 2010: