Heintz Products uses activity-based costing to account for product costs. The plant manager has estimated the following cost drivers and rates.

Direct materials costs were $480,000 and direct labor costs were $320,000 during November, when the plant finished 7,000 pounds of product, had 20 setups, and ran the machines for 15,000 hours. There were no work-in-process inventories. 

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. Use the accounts Materials Inventory, Wages Payable, Work-in-Process Inventory, Finished Goods Inventory, and four overhead applied accounts.

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Activity Centers Materials inspection Equipment maintenance Machine setups... Packing and shipping.. Cost Drivers Direct materials cost Machine-hours Number of production runs Pounds of finished output Rate per Cost Driver Unit 15% of materials cost $12 per machine-hour $6,300 per setup $3.50 per pound