Business A Factory Overhead Rates, Entries, and Account Balance Eclipse 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 Estimated factory overhead cost for fiscal year beginning August 1 $573,240 $837,000 Estimated direct labor hours for year 13,500 Estimated machine hours for year 16,860 Actual factory overhead costs for August $46,000 $72,610 Actual direct labor hours for August 1,220 Actual machine hours for August 1,320 a. Determine the factory overhead rate for Factory 1. 34 per machine hour b. Determine the factory overhead rate for Factory 2. 62 per direct labor hour