Problem: Ganzalez, 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........ _________ 200,000 MHs
Predetermined overhead rate.................. $10 per DL$ ___________
Actual amount of allocation base.............. __________ 190,000 MHs
Actual manufacturing overhead............... $1,092,500 $1,472,500
Applied manufacturing overhead.............. $1,010,000 ___________
Under or overapplied overhead............... __________ ___________
Required:
Fill in the lettered blanks above. Show your calculations!