Factory Overhead Rates, Entries, and Account Balance

Sundance Solar 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	$524,700		$1,154,400
Estimated direct labor hours for year				14,800
Estimated machine hours for year		23,850
Actual factory overhead costs for March		$41,940		$99,590
Actual direct labor hours for March				1,330
Actual machine hours for March		1,860

a. Determine the factory overhead rate for Factory 1. $ per machine hour

b. Determine the factory overhead rate for Factory 2. $ per direct labor hour

c. Journalize the entries to apply factory overhead to production in each factory for March.

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.

Factory 1	$
Factory 2	$