Factory Overhead Rates, Entries, and Account Balance Montenegro Metal 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                                    $12,000,000     $8,360,000 Estimated direct labor hours for year                                          440,000 Estimated machine hours for year                        320,000 Actual factory overhead costs for March           $1,012,600       $695,000 Actual direct labor hours for March                                             36,250 Actual machine hours for March                           27,500 a. Determine the factory overhead rate for Factory 1. Round the answer to two decimal places per machine hour b. Determine the factory overhead rate for Factory 2. Round the answer to two decimal places per direct labor hour c. Journalize the entries to apply factory overhead to production in each factory for March. When required, round your answers to the nearest dollar. If an amount box does not require an entry, leave it blank. 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. When required, round your answers to the nearest dollar

Factory Overhead Rates, Entries, and Account Balance

Montenegro Metal 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                                    $12,000,000     $8,360,000
Estimated direct labor hours for year                                          440,000
Estimated machine hours for year                        320,000
Actual factory overhead costs for March           $1,012,600       $695,000
Actual direct labor hours for March                                             36,250
Actual machine hours for March                           27,500


a. Determine the factory overhead rate for Factory 1. Round the answer to two decimal places per machine hour

b. Determine the factory overhead rate for Factory 2. Round the answer to two decimal places per direct labor hour

c. Journalize the entries to apply factory overhead to production in each factory for March. When required, round your answers to the nearest dollar. If an amount box does not require an entry, leave it blank.

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. When required, round your answers to the nearest dollar.