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 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 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 a. Determine the factory overhead rate for Factory 1. per machine hour $ 44 b. Determine the factory overhead rate for Factory 2. per direct labor hour 70 $927,520 21,080 $73,960 1,640 $1,106,000 15,800 $95,420 1,420

Factory Overhead Rates, Entries, and Account Balance Edipse Solar Company operates two factories. The company applies factory overhead to jobs on the basis of machine hours in Estimated factory overhead costs, direct labor hours, and machine hours are as follows