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:

Estimated factory overhead cost for fiscal year beginning March 1 $726,680 $792,000 Estimated direct labor hours for year 12,000 Estimated machine hours for year 19,640 Actual factory overhead costs for March $58,030 $68,430 Actual direct labor hours for March 1,080 Actual machine hours for March 1,530 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 $