Factory Overhead Rates, Entries, and Account Balance Instructions Chart of Accounts Factory Overhead Rates Journal Instructions Montenegro Metal 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 $1,337.700 Factory 2 $950,400 26.400 Estimated factory overhead cost for fiscal year beginning March 1 Estimated direct labor hours for year Estimated machine hours for year Actual factory overhead costs for March Actual direct labor hours tor March Actual machine hours for March 51,450 $110.730 $107.750 2.940 4,320 Mar 31 Work in Process Factory Overhead Check My Work Previous Next >