Factory Overhead Rates, Entries, and Account Balance Hudson 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: Journalize the entries to apply factory overhead to production in each factory for June. Determine the balances of the factory overhead accounts for each factory as of June 30, and indicate whether the amounts represent overapplied factory overhead or underapplied factory overhead