Factory Overhead Rates, Entries, and Account Balance Montenegro Metal Company operates two factories. The company opplies factory overhead to fobs 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: a-b. Factory 1 overhead is applied based on machine hours. Factory 2 overhesd is applied based on direct labor hours. 2. Journalize the entries to apply factory overhead to production in each factory for March. If an amount box does not require an entry, eave it biank. Feedoack Ticheck Mr 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 March 31 and indicate whether the amounts represent overapplied factory overhead or underapplled factory overhead