Get Real Inc., recently switched to activity-based costing from the department allocation method. The Fabrication Department manager has estimated the following cost drivers and rates:
- Activity center cost drivers rate per cost driver unit
- material handling pounds of material handled $25.20 per pound
- quality inspections # of inspections $315 per inspection
- machine setups # of machine setups $3,780 per setup
- running machines #of machine hours $31.50 per hour
Direct materials of $420,000 were put into production during July, and direct labor costs were $210,000. The Fabrication Department handled 5,250 pounds of materials, made 1,050 inspections, had 56 setups, and ran the machines for 21,000 hours during the month.
Required: Prepare a schedule of the costs applied to work-in-process for July: