Reference no: EM133101678

Question - Factory Overhead Rates, Entries, and Account Balance - 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 fiscalyear 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	$1,082,500	$840,833
Actual direct labor hours for March		20,416
Actual machine hours for March	50,833

Required -

a. Determine the factory overhead rate for Factory 1.

b. Determine the factory overhead rate for Factory 2.

c. Journalize the entries to apply factory overhead to production in each factory for March. When required, round your answers to the nearest dollar.

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.