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...

Extracted text: 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 $1,057,370 $804,000 Estimated direct labor hours for year 12,000 Estimated machine hours for year 24,590 Actual factory overhead costs for March $84,620 $69,470 Actual direct labor hours for March 1,080 Actual machine hours for March 1,920 a. Determine the factory overhead rate for Factory 1. 43 per machine hour b. Determine the factory overhead rate for Factory 2. 67 per direct labor hour c. Journalize the entries to apply factory overhead to production in each factory for March. If an amount box does not require an entry, leave it blank. Factory 1 Work in Process Factory Overhead 82,560 82,560 Factory 2 Work In Process Factory Overhead 72,360 72,360 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 $