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	$12,900,000		$10,200,000
Estimated direct labor hours for year				250,000
Estimated machine hours for year		600,000
Actual factory overhead costs for March		$1,082,500		$840,833
Actual direct labor hours for March				20,416
Actual machine hours for March		50,833

a. Determine the factory overhead rate for Factory 1. Round the answer to two decimal places. $ per machine hour

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

Factory 1	Work in Process
	Factory Overhead
Factory 2	Work in Process
	Factory Overhead

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.