Instructions

Edipse 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:

Required:

a$.$ Determine the factory overhead rate for Factory $1$

b$.$ Determine the factory overtead rate for Factory $2$

c$.$ Joumalize the Aug. $31$ entries to apply factory overhead to proouction in each factory.

d$.$ Determine the balances of the factory overhead accounts for each factory as of August $31,$ and indicate whetherthe amounts represent overapplied factory overhead or underapplied factory overhead.Factory $1$

$

Factory $2-$

Under EQUITY FOR THE CHART OF ACCOUNTS

EQUITY

$311$ Common Stock

$340$ Retained Earnings

$351$ Dividends