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 $18,500,000 $44,000,000 800,000 Estimated factory overhead cost for fiscal year beginning August 1 Estimated direct labor hours for year Estimated machine hours for year Actual factory overhead costs for August Actual direct labor hours for August Actual machine hours for August 1,250,000 $1,515,800 $3,606,300 64,500 105,000 a. Determine the factory overhead rate for Factory 1. Round your answer to two decimal places. per machine hour b. Determine the factory overhead rate for Factory 2. per direct labor hour Feedback Check My Work a-b. Factory 1 overhead is applied based on machine hours. Factory 2 overhead is applied based on direct labor hours. c. Journalize the entries to apply factory overhead to production in each factory for August. If an amount box does not require an entry, leave it blank. Factory 1 Work in Process Factory Overhead Factory 2 Work in Process Factory Overhead Feedback Check My Work C. Increase the work in process and reduce the factory overhead. 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. Factory 1 Credit Overapplied Factory 2 Debit Underapplied Feedback Check My Work d. Compare the actual cost and the applied cost