1) Sundance Solar Company operates two factories. The company applies factory overhead to jobs on the basis of machine hours in Factory 1 and on the basis of direct labor hours in Factory 2. Estimated factory overhead costs, direct labor hours, and machine hours are as follows:

Factory 1 Factory 2

Estimatedfactoryoverheadcostforfiscal year beginning March 1 $1,516,700 $1,074,600

Estimated direct labor hours for year 29,850

Estimated machine hours for year 52,300

Actual factory overhead costs for March $124,880 $98,910

Actual direct labor hours for March 2,700

Actual machine hours for March 4,350

Required:

a. Determine the factory overhead rate for Factory 1.

b. Determine the factory overhead rate for Factory 2.

c. Journalize the Mar. 31 entries to apply factory overhead to production in each factory. Refer to the chart of accounts for the exact wording of the account titles.

d. Determine the balances of the factory overhead accounts for each factory as of March 31, and indicate whether the amounts representoverapplied factory overheadorunderapplied factory overhead.

a. Determine the factory overhead rate for Factory 1.

________________per machine hour

b. Determine the factory overhead rate for Factory 2.

________________per direct labor hour

2) Munson Co. uses a job order cost system. The following data summarize the operations related to production for July:

July 1 Materials purchased on account, $635,470.

2 Materials requisitioned, $628,070, of which $74,070 was for general factory use.

31 Factory labor used, $674,350, of which $94,570 was indirect.

31 Other costs incurred on account for factory overhead, $151,200; selling expenses, $228,420; and administrative expenses, $152,810.

31 Prepaid expenses expired for factory overhead were $27,820; for selling expenses, $28,010; and for administrative expenses, $18,240.

31 Depreciation of office building was $81,480; of office equipment, $43,370; and of factory equipment, $31,020.

31 Factory overhead costs applied to jobs, $363,480.

31 Jobs completed, $992,960.

31 Cost of goods sold, $885,860.

Required:

Journalize the entries to record the summarized operations. Refer to the Chart of Accounts for exact wording of account titles.

Explanation please.