2. (6 points) Gonzalez, Inc. manufactures stereo speakers in two factories; one Vandalia, Illinois and another in Merced, California. The Vandalia factory uses direct labor hours (DLHs) 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: Modesto factory $2,580,000 150,000 MHs Vandalia factory Estimated manufacturing overhead. Predetermined overhead rate Actual amount of allocation base Actual manufacturing overhead. Applied manufacturing overhead.. Under or overapplied overhead (indicate S4,025,000 $35 per DLH (d) $4,100,000 $4,200,000(e) 145,000 MHs $2,600,000 the dollar amount and whether it is over or underapplied Required: Fill in the lettered blanks above. SHOW YOUR CALCULATIONS BELOW (For partial credit)!
|b)||Estimated allocation base||115000||150000|
|c) = a/b||Predetermined overhead rate||35||17.2|
|e)||Predetermined overhead rate||35||17.2|
|f) = h/e||Actual allocation base = Applied overheads/Predetermined overhead rate||120000||145000|
|h) = e*f||Applied overheads||4200000||2494000|
|Applies overheads < Actual overheads||Underapplied|
|Actual overheads < Applied overheads||Overapplied|