1. 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	$530,640		$774,700
   Estimated direct labor hours for year				12,700
   Estimated machine hours for year		24,120
   Actual factory overhead costs for March		$42,390		$66,760
   Actual direct labor hours for March				1,140
   Actual machine hours for March		1,880

   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

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

   Factory 1
   Factory 2

   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	$
   Factory 2	$