Question & Answer: 2. (6 points) Gonzalez, Inc. manufactures stereo speakers in two factories; one Vandalia, Illinois and another in Merced, California. The Vandalia…..

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)!

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)!

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Question & Answer: 2. (6 points) Gonzalez, Inc. manufactures stereo speakers in two factories; one Vandalia, Illinois and another in Merced, California. The Vandalia…..
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Vandalia Modesto
a) Estimated overhead 4025000 2580000
b) Estimated allocation base 115000 150000
c) = a/b Predetermined overhead rate 35 17.2
d) Actual overheads 4100000 2600000
e) Predetermined overhead rate 35 17.2
f) = h/e Actual allocation base = Applied overheads/Predetermined overhead rate 120000 145000
g) Actual overheads 4100000 2600000
h) = e*f Applied overheads 4200000 2494000
Applies overheads < Actual overheads Underapplied
Actual overheads < Applied overheads Overapplied

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