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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
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 Estimated factory overhead cost for fiscal year beginning March 1 $1,516,700 Factory 2 $1,074,600 29,850 Estimated direct labor hours for year Estimated machine hours for year 52,300 $124,880 Actual factory overhead costs for March $98,910 Actual direct labor hours for March 2.700 Actual machine hours for March 4,350 Required: A. Determine the factory overhead rate for Factory 1. B. Determine the factory overhead rate for Factory 2. C. Journalize the Mar. 31 entries to apply factory overhead to production in each factory for March. Refer to the Chart of Accounts for exact wording of account titles. 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. Enter your answer as a positive number. Factory Overhead Rates Journal A. Determine the factory overhead rate for Factory 1. Now journalize the second Mar. 31 entry to apply factory overhead to production in Factory 2 for March. Refer to the Chart of per machine hour B. Determine the factory overhead rate for Factory 2. JOURNAL per direct labor hour DATE DESCRIPTION POST. REF. DEBIT CREDIT Final Question 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. Enter your answer as a positive number. Factory 1 Factory 2 $ $
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