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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 Material 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 $ 17 per pound $ 22e per inspection $2,700 per setup $22.00 per hour Direct materials costs were $294,000 and direct labor costs were $143.000 during July, when the Fabrication Department handled 3,700 pounds of materials. made 710 inspections. had 50 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 Beg. bal. End, bal. Overhead Applied: Materials Handling Beg. bal. End. bal. Overhead Applied: Machine Setups Beg. bal End. bal. Work in Process (WIP) Inventory Fabrication Department Beg. bal Wages Payable Beg. bal. End, bal. Overhead Applied: Quality Inspections Beg. bal. End. bal. Overhead Applied: Running Machines Beg. bal. End. bal. Finished Goods Inventory Beg. bal

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