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 $674,520 $984,900

Estimated direct labor hours for year 14,700

Estimated machine hours for year 16,060

Actual factory overhead costs for March $53,810 $84,900

Actual direct labor hours for March 1,320

Actual machine hours for March 1,250

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 $----------- -------------