southwest components

Southwest Components recently swtched 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 Unt S 16 per pound $ 250 per inspection $2600 per setup $22 00 per hour Activity Certers Materials handing Quality inspections Machine setups Running machines Cost Drivers Pounds of material handed Number of inspections Number of machine setups Number of machine hours Direct materials costs were $288.000 and direct labor costs were $152.000 during July when the Fabrication Department handled 3.500 pounds of materials made 730 impections had 30 seups and ran the machines for 13,000 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 ba End bal Overhead Appled: Materials Handings Overhead Appled: Quality Inspections Beg ba Beg bal End bal End ba Overhead Applied: Machine Setups Overhead Appled: Running Machines Beg bal Beg bal End bal End bal Finished Goods Inventory Work in Process (WIP) Imrentory Fabrication Department Beg bal Beg ba End ba End bal