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:

Item Line Description Factory $1$ Factory $2$

Estimated factory overhead cost for fiscal year beginning August $1$ $$357,580$ $$965,600$

Estimated direct labor hours for year $14,200$

Estimated machine hours for year $18,820$

Actual factory overhead costs for August $$28,630$ $$83,560$

Actual direct labor hours for August $1,280$

Actual machine hours for August $1,470$

Question Content Area

a$.$ Determine the factory overhead rate for Factory $1.$

fill in the blank $1$ of $2$$

per machine hour

b$.$ Determine the factory overhead rate for Factory $2.$

fill in the blank $2$ of $2$$

per direct labor hour

Question Content Area

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.

TransactionAccountDebitCredit

Factory $1$

Factory $2$

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c$.$ Increase the work in process and reduce the factory overhead.

Question Content Area

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.

Item Amount Debit or Credit Underapplied or Overapplied

Factory $1$ fill in the blank $1$ of $6$$

Factory $2$ fill in the blank $4$ of $6$$