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	$1,337,500	$847,000
Estimated direct labor hours for year		24,200
Estimated machine hours for year	53,500
Actual factory overhead costs for March	$108,410	$96,900
Actual direct labor hours for March		2,720
Actual machine hours for March	4,400

Required:

a.	Determine the factory overhead rate for Factory 1.
b.	Determine the factory overhead rate for Factory 2.
c.	Journalize the Mar. 31 entries to apply factory overhead to production in each factory for March. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
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. Enter your answer as a positive number.