Montenegro Metal 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 March.

d. Determine the balances of the factory overhead accounts for each factory as of March 31 and indicate whether the amounts represent over- or underapplied factory overhead.

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Factory 1 Factory 2 Estimated factory overhead cost for fiscal year beginning March 1 Estimated direct labor hours for year $12,000,000 $8,360,000 440,000 Estimated machine hours for year Actual factory overhead costs for March Actual direct labor hours for March Actual machine hours for March 320,000 $1,012,600 $695,000 36,250 27,500