Question
2. (8 points) Gonzalez, Inc. manufactures stereo speakers in two factories; one in Vandalia, Illinois, and another in Merced, California. The Vandalia factory uses
2. (8 points) Gonzalez, Inc. manufactures stereo speakers in two factories; one in Vandalia, Illinois, and another in Merced, California. The Vandalia factory uses direct labor hours (DLHs) for its overhead rate and the Merced factory uses machine hours (MHS) for its overhead rate. Information related to both plants for last year is presented below: Vandalia factory Merced factory Estimated manufacturing overhead Estimated amount of allocation base $990,000 $3,225,000 (a) 150,000 MHS Predetermined overhead rate $18 per DLH (d) Actual amount of allocation base (b) 149,000 MHS Actual manufacturing overhead $1,185,000 $3,185,000 Applied manufacturing overhead $1,026,000 (e) Under or overapplied overhead (indicate (c). (f). the dollar amount and whether it is over or underapplied) Required: Fill in the lettered blanks above. SHOW YOUR CALCULATIONS BELOW (For partial credit)!
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