Factory overhead Rates, Entries, and account Balance. Sundance solar company operates two factories. The company supplies factory overhead to jobs on the basis of machine hours in factory. 1 and basis of direct labor hours in factory 2. Estimated factory overhead costs, direct labor hours, machine hours are as follows: 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 is each factory for March. d. Determine the balance of the factory overhead accounts for each factory as March 31, and indicate whether the represent overhead or under applied factory overhead.