Exercise 9-48 (Static) Activity-Based Costing: Cost Flows through T-Accounts (LO 9-5, 7) 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: 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 Rate per Cost Driver Unit 36 per pound $ 450 per inspection $5,400 per setup 145 per hour nces Direct materials costs were $600,000 and direct labor costs were $300,000 during July, when the Fabrication Department handle 3,000 pounds of materials, made 500 inspections, had 25 setups, and ran the machines for 10,000 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 Materials Inventory Wages Pay of Beg bal Beg, bal 600,000 Work in process Help Save . EXIE Check my w less livenly dilu Oulu H eu uuus Hierony. Materials Inventory Wages Pay. Beg. bal. Beg. bal. 600,000 Work in process End, bal. 600,000 End, bal Overhead Applied: Materials Handling Overhead Applied: Quality Beg bal. Beg. bal. 108,000 Work in process End, bal 108,000 End, bal. Overhead Applied: Running Overhead Applied: Machine Setups Beg bal. Beg, bal 135,000 Work in process End. bal. 135,000 End, bal Check my work livelliy diu DULLU FINISIEU vuous liver diy. Materials Inventory . bal. Beg, bal Wages Payable of 600,000 Work in process nd. bal. 600,000 End. bal. Overhead Applied: Quality Beg. bal. Overhead Applied: Materials Handling 0 108,000 Work in process Beg. bal. 108,000 End, bal End. bal. Overhead Applied: Runnin Overhead Applied: Machine Setups Beg. bal 135,000 Work in process End, bal End bal. > Verlory. mventory Wages Payable Beg. bal. 600,000 Work in process 300,000 Work in process 600,000 End. bal. 300,000 : Materials Handling Overhead Applied: Quality Inspections Beg. bal. 108,000 Work in process 225,000 Work in process 108,000 End, bal M 225,000 ied: Machine Setups or Beg. bal. Overhead Applied: Running Machines or 450,000 Work in process 135,000 Work in process 135,000 End, bal CH 09 Homework Overhead Applied: Machine Setups Beg. bal Beg. bal. 135,000 Work in process End. bal. 135,000 End. bal. Beg. bal Work in process Work in Process (WIP) Inventory Fabrication Department Beg. bal Direct materials 600,000 1,818,000 Finished goods inventory Direct labor 300,000 Material handling OH 108,000 Quality inspections OH 225,000 Machine setup OH 135,000 Running machines OH 450,000 End. bal. End. bal. Chec Overhead Applied: Running Machines Beg. bal. k in process 450,000 Work in process End. bal. 450,000 partment Finished Goods Inventory Beg. bal Work in process mished goods inventory 1,818,000 1,818,000 End. bal