Gonzalez, Inc. manufactures stereo speakers in two factories; one in Vandalia, Illinois and another in Modesto, California. The Vandalia factory uses DL$ for its overhead rate and the Modesto factory uses machine-hours (MHs) for its overhead rate. Information related to both plants for last year is presented below:
|
Vandalia factory
|
Modesto factory
|
|
Estimated manufacturing overhead
|
$1,000,000
|
$1,600,000
|
|
Estimated amount of allocation base
|
(a)______________
|
200,000 MHs
|
|
Predetermined overhead rate
|
$10 per DL$
|
(d)______________
|
|
Actual amount of allocation base
|
(b)______________
|
190,000 MHs
|
|
Actual manufacturing overhead
|
$1,092,500
|
$1,472,500
|
|
Applied manufacturing overhead
|
$1,010,000
|
(e)_______________
|
|
Under or overapplied overhead
|
(c)______________
|
(f)_______________
|
Required:
Fill in the lettered blanks above. SHOW YOUR CALCULATIONS.