ASSETS REVENUE 110 Cash 410 Sales 121 Accounts Receivable 610 Interest Revenue 125 Notes Receivable 126 Interest Receivable EXPENSES 131 Materials 510 Cost of Goods Sold 132 Work in Process 520 Wages Expense 133 Factory Overhead 531 Selling Expenses 134 Finished Goods 532 Insurance Expense 141 Supplies 533 Utilities Expense 142 Prepaid Insurance 534 Office Supplies Expense 143 Prepaid Expenses 540 Administrative Expenses 181 Land 580 Depreciation Expense-Factory 191 Factory 590 Miscellaneous Expense 182 Accumulated Depreciation-Factory 710 Interest Expense LIABILITIES 210 Accounts Payable 221 Utilities Payable 231 Notes Payable 236 Interest Payable 241 Lease Payable 251 Wages Payable 252 Consultant Fees Payable EQUITY 311 Common Stock 340 Retained Earnings 351 DividendsInstructions Montenegro Metal 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 Estimated factory overhead cost for fiscal year beginning March 1 $12,000,000 $8,360,000 Estimated direct labor hours for year 440,000 Estimated machine hours for year 320,000 Actual factory overhead costs for March $1,012,600 $805,000 Actual direct labor hours for March 38,250 Actual machine hours for March 27.500 Required: 3. Determine the factory overhead rate for Factory 1. Round the answer to two decimal paces. b. Determine the factory overhead rate for Factory 2. Round the answer to two decimal paces. c. Journalize the Mar. 31 entries to apply factory overhead to production in each factory for March. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOWjoumals will automatically indent a credit entry when a credit amount is entered. When required, round your answers to the nearest dollar. d. Determine the balances of the factory overhead accounts for each factory as of March 31 and indicate whether the amounts represent overapplied factory overhead or underapplied factory overhead. When required, round your answers to the nearest dollar. Enter your answer as a positive number.Factory Overhead Rates X 3. Determine the factory overhead rate for Factory 1. Round the answer to two decimal paces. per machine hour b. Determine the factory overhead rate for Factory 2. Round the answer to two decimal paces. per direct labor hourc. Journalize the Mar. 31 entry to apply factory overhead to production in Factory 1 for March. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. When required, round your answers to the nearest dollar. PAGE 10 JOURNAL ACCOUNTING FOUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY Now journalize the second Mar. 31 entry to apply factory overhead to production in Factory 2 for March. Refer to the chart of accounts for the exact wording of the account titles. CNOWjournals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW joumals will automatically indent a credit entry when a credit amount is entered. When required, round your answers to the nearest dollar. PAGE 10 JOURNAL ACCOUNTING FOUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY