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:

	Factory 1	Factory 2
Estimated factory overhead cost for fiscal
	year beginning March 1	$746,280		$904,800
Estimated direct labor hours for year		15,600
Estimated machine hours for year	20,730
Actual factory overhead costs for March	$59,780		$77,950
Actual direct labor hours for March		1,400
Actual machine hours for March	1,620

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a. Determine the factory overhead rate for Factory 1. $fill in the blank 465799fb0fcbfe4_1 per machine hour

b. Determine the factory overhead rate for Factory 2. $fill in the blank 465799fb0fcbfe4_2 per direct labor hour

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c. Journalize the entries to apply factory overhead to production in each factory for March. If an amount box does not require an entry, leave it blank.

Factory 1	Accounts ReceivableCashFactory OverheadMaterialsWork in Process	- Select -	- Select -
	Accounts PayableAccounts ReceivableCashFactory OverheadWork in Process	- Select -	- Select -
Factory 2	Accounts PayableCashFactory OverheadMaterialsWork in Process	- Select -	- Select -
	Accounts PayableCashFactory OverheadMaterialsWork in Process	- Select -	- Select -

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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.

Factory 1	$fill in the blank 926737fd006dfc3_1	CreditDebit	OverappliedUnderapplied
Factory 2	$fill in the blank 926737fd006dfc3_4	CreditDebit	OverappliedUnderapplied