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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 Factory 2 Estimated factory overhead cost for fiscal year beginning March 1 $1478,250 $1,023,050 Estimated direct labor hours for year 27,650 Estimated machine hours for year 54,750 Actual factory overhead costs for March $111,040 $103,620 Actual direct labor hours for March 2,750 Actual machine hours for March 4,170 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 Refer to the chart of accounts for the exact wording of the account tites. 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
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