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Catalina Salls makes sails for small sailboats. It recently switched to activity-based costing from the department product costing method. The manager of Department Y, which

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Catalina Salls makes sails for small sailboats. It recently switched to activity-based costing from the department product costing method. The manager of Department Y, which manufactures the sails, has identified the following cost drivers and rates for overhead: Rate per Activity Centers Cost Driver Cost Driver Unit Materials handling Yards of material handled 50.90 per yard Quality Inspection Number of inspections $ 120 per inspection Machine setups Number of machine setups $ 800 per setup Running machines Number of machine-hours $ per hour Direct materials costs were $225,000 and direct labor costs were $106,000 during October, when Department Y handled 36,400 yards of materials, made 900 inspections, had 120 setups, and ran the machines for 24,800 hours. Required: Use Taccounts 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 Materials Inventory Wages Payable Begal Begal End, but End, but Overhead Applied Material Handling Overhead Applied: Quality Inspections Beghel Begal End bal End, bal Direct materials costs were $225,000 and direct labor costs were $106.000 during October, when Department Y handled 36,400 yards of materials, made 900 inspections, had 120 setups, and ran the machines for 24,800 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 Materials Inventory Beg, bal Wages Payable Beg bol End bal Endbal Overhead Applied: Materials Handling Beg, bal Overhead Applied: Quality Inspections + Bog, bal End bal Endball Overhead Applied: Machine Setups Beg bal Overhead Applied: Running Machines Begal Endbal Endbal Work in Process (WIP) Inventory Department Y Beg bol Finished Goods Inventory Bogbal (Endbal End bal

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