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	$12,000,000		$8,360,000
Estimated direct labor hours for year				440,000
Estimated machine hours for year		320,000
Actual factory overhead costs for March		$1,012,600		$695,000
Actual direct labor hours for March				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. $fill in the blank b953ba06305efa0_1 per machine hour

b. Determine the factory overhead rate for Factory 2. Round the answer to two decimal places. $fill in the blank b953ba06305efa0_2 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.

c. Increase the work in process and reduce the factory overhead.Feedback

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.

d. Compare the actual cost and the applied cost.Feedback