19.4

Factory Overhead Rates, Entries, and Account Balance Montenegro Metal Company operates two factories. The company applles factory overhead to jobs on the basis of machine hours in Factory 1 and or 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 fiscal year beginning March 1 $439,800 $719,400 Estimated direct labor hours for year 10,900 Estimated machine hours for year 14,660 Actual factory overhead costs for March $35,060 $62,090 Actual direct labor hours for March Actual machine hours for March 1,140 a. Determine the factory overhead rate for Factory 1. per machine hour b. Determine the factory overhead rate for Factory 2. per direct labor hour 980 c. Journalize the entries to apply factory overhead to production in each factory for March. If an amount box does not require an entry, leave it blank Factory 1 $35,060 $62,090 980 1,140 Actual factory overhead costs for March Actual direct labor hours for March Actual machine hours for March a. Determine the factory overhead rate for Factory 1. per machine hour b. Determine the factory overhead rate for Factory 2. per direct labor hour C. Journalize the entries to apply factory overhead to production in each factory for March. If an amount box does not require an entry, leave it blank. Factory 1 Factory 2 d. Determine the balances of the factory overhead accounts for each factory as of March 31 and indicate whether the amounts represent overapplied factory overhead or underapplied factory overhead. Factory 1$ Factory 2