Factory Overhead Rates and Account Balances Prostheses Industries operates two foctorles. The-manufacturing operations of Factory 1 are machine intensive, while the manufacturing operations of Factory 2 are fabor intensive. 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 isosts, direct labor hours, and machine hours are as follows: a. Determine the factory overhead rate for Foctory 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 d. Determine the balances of the factory averhead accounts for each factory as of August 31, and indicate whether the amounts regresent (overapplied) or underappled factory overhead. Factory 1 Factory 2 e. Explain why Factory 1 -uses machine hours to allocate factory overhesd while Factory 2 uses direct labor hours: Factory oveihead should be allocated using a base that is related to (causes) the overtheod corts incurred. Factory 1 has a manufacturing operation, and Factory 2 has a manufacturing operabion. Thus, Factory 1 uses machine hours, and Factory 2 uses direct labor hours to allocate factory overhead