Exercise 9-48 (Algo) 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 Fabrication Department manager has estimated the following cost drivers and rates: Activity Centers Materials 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 $20 per pound $ 210 per inspection, $2,600 per setup $23.00 per hour Direct materials costs were $311,000 and direct labor costs were $165,000 during July, when the Fabrication Department handled 3,800 pounds of materials, made 740 inspections, had 40 setups, and ran the machines for 16.000 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 Wages Payable Beg bal End bal Overhead Applied: Materials Handling Beg bal Overheed Applied: Quality Inspections Beg bal End bal End bal Overhead Applied: Machine Setups Beg bal Overhead Applied Running Machines Beg bal End bal End bal Work in Process (WIP) Inventory Fabrication Department Beg bal Finished Goods Inventory Beg bal End bal End bal