CH 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 Fabricati Department manager has estimated the following cost drivers and rates: Rate per Activity Centers Cost Drivers Cost Driver Unit Materials handling Pounds of material handled 36 per pound Quality inspections Number of inspections $450 per inspection Machine setups Number of machine setups $5,400 per setup Running machines Number of machine-hours $ 45 per hour Direct materials costs were $600,000 and direct labor costs were $300,000 during July, when the Fabrication Departmer 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 w Process Inventory and out to Finished Goods Inventory Beg. bal Materials Inventory 0 600,000 Work in process Bog, bat End, bal 600,000 End, bal Overhead Applied: Materials Handling Overhead