Montenegro Metal 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 $12,000,000 $8,360,000 Estimated direct labor hours for year 440,000 Estimated machine hours for year 320,000 Actual factory overhead costs for March $1,012,600 $695,000 Actual direct labor hours for March 36,250 Actual machine hours for March 27,500 Required a Determine the factory overhead rate for Factory 1 Round the answer to two decimal paces b Determine the factory overhead rate for Factory 2 Round the answer to two decimal paces c Journalize the Mar 31 entries to apply factory overhead to production in each factory for March Refer to the chart of accounts for the exact wording of the account titles CNOW journals do not use lines for journal explanations Every line on a journal page is used for debit or credit entries CNOW journals will automatically indent a credit entry when a credit amount is entered When required, round your answers to the nearest dollar 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 When required, round your answers to the nearest dollar Enter your answer as a positive number a Determine the factory overhead rate for Factory 1 Round the answer to two decimal paces per machine hour b Determine the factory overhead rate for Factory 2 Round the answer to two decimal paces per direct labor hour 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 When required, round your answers to the nearest dollar Enter your answer as a positive number Factory 1 Factory 2 will automatically indent a credit entry when a credit amount is entered When required, round your answers to the nearest dollar

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Montenegro Metal Company operates two factories. The company applies factory overhead to jobs on the basis of machine hours in Factory 1 and on the

Montenegro Metal 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	$12,000,000	$8,360,000
Estimated direct labor hours for year		440,000
Estimated machine hours for year	320,000
Actual factory overhead costs for March	$1,012,600	$695,000
Actual direct labor hours for March		36,250
Actual machine hours for March	27,500

Required:

a.	Determine the factory overhead rate for Factory 1. Round the answer to two decimal paces.
b.	Determine the factory overhead rate for Factory 2. Round the answer to two decimal paces.
c.	Journalize the Mar. 31 entries to apply factory overhead to production in each factory for March. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. When required, round your answers to the nearest dollar.
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. When required, round your answers to the nearest dollar. Enter your answer as a positive number.

a. Determine the factory overhead rate for Factory 1. Round the answer to two decimal paces.

per machine hour

b. Determine the factory overhead rate for Factory 2. Round the answer to two decimal paces.

per direct labor hour

image text in transcribed

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. When required, round your answers to the nearest dollar. Enter your answer as a positive number.