Sundance Solar Company operates two factories. The company applies factory overhead costs to jobs based on machine hours at Factory 1 and on the basis of direct labor hours at Factory 2. Estimated factory overhead costs, factory overhead hours, Direct labor and machine hours are as follows:

		Factory 1		Factory 2
Estimated factory overhead cost for the fiscal year
	year beginning March 1	$12,900,000		$10,200,000
Estimated direct labor hours for the year				250.000
Estimated machine hours per 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

a. Determine the factory overhead rate for Factory 1

b. Determine the factory overhead rate for Factory 2.

C. Journalize entries to apply factory overhead to production at each factory for March. When necessary, round your answers to the nearest dollar.

d. Determine the balances in the FGM accounts for each Facility as of March 31, and indicate whether the amounts represent overapplied FGM or underapplied FGM.

Answer rating: 100% (QA)

a Determine the factory overhead rate for Factory 1 The factory overhead rate for Factory 1 is calcu... View the full answer