Factory Overhead Rates and Account Balance Prostheses Industries operates two factories. The manufacturing operations of Factory 1 are machine intensive, while the manufacturing operations of Factory 2 are labor intensive. The company applies factory overhead to jobs on the basis of machine hou 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 $757,080 $877,200 Estimated direct labor hours for year 12,900 Estimated machine hours for year 21,030 Actual factory overhead costs for August $60,520 $75,720 Actual direct labor hours for August 1,160 Actual machine hours for August 1,640 a. Determine the factory overhead rate for Factory 1. Round your answer to the nearest cent. per machine hour b. Determine the factory overhead rate for Factory 2. Round your answer to the nearest cent. per direct labor hour c. Determine the factory overhead applied to production in each factory for January. Factory 1 Factory 2 d. Determine the balances of the factory accounts for each factory as of January 31, and indicate whether the amounts represent overapplied or underapplied factory overhead