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Tiny Biggs Company operates two factories. The company applies factory overhead to jobs on the basis of machine hours in Factory 1 and on the
Tiny Biggs 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: actory Factory 2 Estimated factory overhead cost for fiscal year beginning September 1 $1,337,700 $950,400 Estimated direct labor hours for year 26,400 Estimated machine hours for year 51,450 Actual factory overhead costs for September $110,730 $107,750 Actual direct labor hours for September 2,940 4,320 Actual machine hours for Septembe Required A. Determine the factory overhead rate for Factory 1. B. Determine the factory overhead rate for Factory 2. C. Journalize the Sep. 30 entries to apply factory overhead to production ineach factory for September. 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 September 30, and indicate whether the represent everappled facten overhead or underapplied factony ewerbead. amounts
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