Gonzales, Inc, manufactures stereo speakers in two factories; one in Vandalia, I

Question

Gonzales, Inc, manufactures stereo speakers in two factories; one in Vandalia, Illinois and another in Modesto, California. The Vandalia factory uses dirct labor hours(DLHs) for its overhead rate and the Modesto factory ueses 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...... $5,000,000 $12,000,000
Estimated amount of allocation base..... a)---------- 300,000 MHs
Predetermined overhead rate.............. $100 per DLH d)-------------
Actual amount of allocation base.......... b)----------- 285,000 MHs
Actual manufacturing overhead.......... $5,200,000 $10,950,000
Applied manufacturing overhead........ $5,600,000 e)--------------
Under or overapplied overhead( indicate
the dollar amount and whether it is over
or underapplied)................................ c)------------- f)-----------------


**i need to fill in the lettered blanks from a) to f) and need to show my calulations... please help.. thanks!

Explanation / Answer

a)      $50,000    

b) $56000    

c. -400,000

d) $ 4 per MH

e) 285,000 x4=1140000

f) 1140000-$10,950,000=

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