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:

ezto mhed ucation Com 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 Activity Centers Cost Drivers Materials handling Pounds of material handled 8 per pound Quality inspections Number of inspections 220 per inspection Number of machine setups $2,800 per setup Machine setups Running machines Number of machine-hours $23.00 per hour Direct materials costs were S310,000 and direct labor costs were $146,000 during July, when the Fabrication Department handled 3,600 pounds of materials, made 750 inspections, had 30 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. Materials Inventory Wages Payable Beg. bal. Beg, bal. End. bal. End, bal. Overhead Applied: Materials Handling overhead Applied: Quality Inspections Beg. bal. Beg. bal. End. bal. End. bal. Overhead Applied: Machine Setups Overhead Applied: Running Machines Beg, bal Beg, bal. End. bal. End. bal. Work in Process (WIP) Inventory Fabrication Department Finished Goods Inventory Beg- bal Beg, ball