Factory Overhead Rates, Entries, and Account Balance 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: 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 for March Actual machine hours for March Factory 1 Factory 2 $12,000,000 $8,360,000 440,000 320,000 $1,012,600 $695,000 36,250 27,500 a. Determine the factory overhead rate for Factory 1. Round the answer to two decimal places. per machine hour b. Determine the factory overhead rate for Factory 2. Round the answer to two decimal places. per direct labor hour c. Journalize the entries to apply factory overhead to production in each factory for March. When required, round your answers to the nearest dollar. If an amount box does not require an entry, leave it blank. Factory 1 Factory 2 38 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 eBook Show Me How 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 for March Actual machine hours for March $12,000,000 $8,360,000 440,000 320,000 $1,012,600 $695,000 36,250 27,500 a. Determine the factory overhead rate for Factory 1. Round the answer to two decimal places. per machine hour b. Determine the factory overhead rate for Factory 2. Round the answer to two decimal places. per direct labor hour c. Journalize the entries to apply factory overhead to production in each factory for March. When required, round your answers to the nearest dollar. If an amount box does not require an entry, leave it blank. Factory 1 Factory 2 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 underapplied factory overhead. When required, round your answers to the nearest dollar. Factory 1 Factory 2 Check My Work Previous Next