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: Estimated manufacturing overhead Vandalia factory $990,000 Merced factory $3,225,000 Estimated amount of allocation base (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)! 3. (12 points) Anchor Inc. uses the weighted-average method in its process costing system. The following data concern the operations of the company's first processing department for a recent month. Work in process, beginning: Units in process 5,000 Costs in the beginning inventory: Materials cost $281,250 Conversion cost $50,000 Units started into production during the month 130,000 Units completed and transferred out 110,000 Costs added to production during the month: Materials cost $500,000 Conversion cost $400,000 Work in process, ending: Units in process 25,000 % of completion with respect to materials 60% % of completion with respect to conversion 40% Required: Prepare a process costing departmental production report (calculation of equivalent units, cost per equivalent unit, and cost reconciliation) for the department using the weighted-average method. Round the cost per unit to the nearest cent. 4. (8 points) The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31: Amount Sales Sales in units $ 220,000 440 pairs Selling price per pair of skis $ 500 Variable selling expense per pair of skis $ 35 Variable administrative expense per pair of skis $ 19 Total fixed selling expense $ 31,000 Total fixed administrative expense $ 28,000 Beginning merchandise inventory $ 80,000 Ending merchandise inventory $ 60,000 Merchandise purchases $ 100,000 Note: to calculate COGS you will need to use the following equation: Beg. Merch. Inventory + Merch. Purchases - End. Merch. Inventory. COGS is a variable expense. Required: 1. Prepare a traditional income statement for the quarter ended March 31. 2. Prepare a contribution format income statement for the quarter ended March 31. 3. What was the contribution margin per unit