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	$1,337,500	$847,000
Estimated direct labor hours for year		24,200
Estimated machine hours for year	53,500
Actual factory overhead costs for August	$108,410	$96,900
Actual direct labor hours for August		2,720
Actual machine hours for August	4,400

Required:

	a. Determine the factory overhead rate for Factory 1.
	b. Determine the factory overhead rate for Factory 2.
	c. Journalize the Aug. 31 entries to apply factory overhead to production in each factory.
	d. Determine the balances of the factory overhead accounts for each factory as of August 31, and indicate whether the amounts represent overapplied factory overhead or underapplied factory overhead.

CHART OF ACCOUNTS

Eclipse Solar Company

General Ledger

	ASSETS
110	Cash
121	Accounts Receivable
125	Notes Receivable
126	Interest Receivable
131	Materials
132	Work in Process
133	Factory Overhead
134	Finished Goods
141	Supplies
142	Prepaid Insurance
143	Prepaid Expenses
181	Land
191	Factory
192	Accumulated Depreciation-Factory

	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	Dividends

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 c. Journalize the Aug. 31 entry to apply factory overhead to production in Factory 1. Scroll down to record the entry for Factory 2. Now journalize the second Aug. 31 entry to apply factory overhead to production in Factory 2. d. Determine the balances of the factory overhead accounts for each factory as of August 31 , and indicate whether the amounts represent overapplied factory overhead or