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||$12,900,000||$10,200,000|
|Estimated direct labor hours for year||250,000|
|Estimated machine hours for year||600,000|
|Actual factory overhead costs for March||$12,990,000||$10,090,000|
|Actual direct labor hours for March||245,000|
|Actual machine hours for March||610,000|
a. 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 in each factory for March.
|Factory 1||Work in Process|
|Factory 2||Work in Process|
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.