5 Southwest Components recently switched to activity-based costing from the department allocation method. The Fabrication Department manager has estimated the following cost drivers and rates: Rate per Cost Driver Unit 17 per pound $ 240 per inspection 10 points Activity Centers Materials handling Quality inspections Machine setups Running machines Cost Drivers Pounds of material handled $ Number of inspections Number of machine setups Number of machine-hours eBook $2,900 per setup $21.00 per hour Print References Direct materials costs were $313,000 and direct labor costs were $163,000 during July, when the Fabrication Department handled 3,700 pounds of materials, made 740 Inspections, had 40 setups, and ran the machines for 15,000 hours. Required: Use T-accounts to show the flow of materials, labor, and overhead costs from the four overhead activity centers through Work-In- Process Inventory and out to Finished Goods Inventory. Beg. bal. Materials Inventory Beg. bal. Wages Payable End. bal. End. bal. Overhead Applied: Materials Handling Overhead Applied: Quality Inspections Beg. bal. Beg. bal. End. bal. End. bal. Overhead Applied: Machine Setups Beg. bal Overhead Applied: Running Machines Beg. bal. End. bal. End. bal. Work in Process (WIP) Inventory Fabrication Department Beg. bal Finished Goods Inventory Beg. bal