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 Factory 1 Factory 2 $12,000,000 $8,360,000 440,000 320,000 $1,012,600 $695,000 36,250 Actual machine hours for March 27,500 a. Determine the factory overhead rate for Factory 1. Round the answer to two decimal places. 37.50 per machine hour $ b. Determine the factory overhead rate for Factory 2. Round the answer to two decimal places. 19.00 per direct labor hour