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		Factory 2
Estimated factory overhead cost for fiscal
	year beginning March 1	$12,900,000		$10,200,000
Estimated direct labor hours for year				250,000
Estimated machine hours for year		600,000
Actual factory overhead costs for March		$12,990,000		$10,090,000
Actual direct labor hours for March				245,000
Actual machine hours for March		610,000

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

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c. Journalize the entries to apply factory overhead to production in each factory for March.

Factory 1	Work in Process
	Factory Overhead
Factory 2	Work in Process
	Factory Overhead

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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	$	Credit	Overapplied
Factory 2	$	Debit	Underapplied