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Factory Overhead Rates, Entries, and Account Balance

Eclipse 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 August 1	$593,600		$595,900
Estimated direct labor hours for year		10,100
Estimated machine hours for year	16,960
Actual factory overhead costs for August	$47,350		$51,540
Actual direct labor hours for August		910
Actual machine hours for August	1,320

a. Determine the factory overhead rate for Factory 1. $fill in the blank 61a63700bfcffe6_1 per machine hour

b. Determine the factory overhead rate for Factory 2. $fill in the blank 61a63700bfcffe6_2 per direct labor hour

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c. Journalize the entries to apply factory overhead to production in each factory for August. If an amount box does not require an entry, leave it blank.

Factory 1

Factory 1
Factory 2

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d. Determine the balances of the factory overhead accounts for each factory as of August 31, and indicate whether the amounts represent overapplied factory overhead or underapplied factory overhead.

Factory 1

Factory 2