Almer 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:

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 July.
d. Determine the balances of the factory overhead accounts for each factory as of July 31, and indicate whether the amounts represent overapplied or underapplied factoryoverhead.

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Factory 1Factory 2 Estimated factory overhead cost for fiscal 100800 $861,000 21,000 year beginning July 1 Estimated direct labor hours for year Estimated machine hours for year Actual factory overhead costs for July Actual direct labor hours for July Actual machine hours for July 42,000 $74,480 $77,500 2,000 3,050