Detroit Motor Co. 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 April.
d. Determine the balances of the factory accounts for each factory as of April 30, and indicate whether the amounts represent overapplied or underapplied factoryoverhead.

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Factory 1Factory 2 Estimated factory overhead cost for fiscal $237,500 112,500 9,000 year beginning April 1 Estimated direct labor hours for year Estimated machine hours for year Actual factory overhead costs for April Actual direct labor hours for April Actual machine hours for April 12,500 $20,100 $9,450 770 1,035