Question
(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
(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 $990,000 $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 over
Under or overapplied overhead (indicate the dollar amount and whether it is over or underapplied)........................... | (c)______________ | (f)_______________ |
Required:
Fill in the lettered blanks above. SHOW YOUR CALCULATIONS BELOW (For partial credit)!
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