Koushirou Incorporated manufactures special made to order construction equipment. It has three production departments (Cutting, Tooling, and Assembly) and two service departments (Janitorial and Maintenance). In any production department, the job in process is wholly completed before the next job is started. The company operates on a calendar year.
The company uses job order costing since each job is unique. Job names are assigned using a two letter code for the company combined with the number of units contracted for. Before beginning, notice Exhibit 1 and 2 included in this company information:
Exhibit 1 shows a post-closing trial balance as of December 31, 2019
Exhibit 2 shows subsidiary ledgers for the Finished Goods, Work in Process, and Materials accounts. The company uses the FIFO method of Accounting for all inventory.
Task #1: The company uses departmental overhead rates. Cutting and Tooling use machine hours. Assembly uses direct labor hours. In December of the year just completed, the company estimated the new year's overhead related activity as follows:
		Cutting	Tooling	Assembly	Total
Machine hours		30,000	25,000	7,500	62,500
Direct Labor Hours		3,000	4,000	15,000	22,000
Estimated Annual O/H		$195,000	$100,000	$150,000	$445,000