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 $724,880 $896,000 Estimated direct labor hours for year 16,000 Estimated machine hours for year 21,320 Actual factory overhead costs for March $57,850 $77,410 Actual direct labor hours for March 1,440 Actual machine hours for March 1,660 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