EX 19-8 Factory overhead rates, entries, and account balance OBJ. 2 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 $695,000 Actual direct labor hours for March 36,250 Actual machine hours for March 27,500 a. Determine the factory overhead rate for Factory 1. b. Determine the factory overhead rate for Factory 2. c. Journalize the entries to apply factory overhead to production in each factory for March. d. Determine the balances of the factory overhead accounts for each factory as of March 31 and indicate whether the amounts represent over- or underapplied fac-