Factory Overhead Rates, Entries, and Account Balance Hudson 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: Factory 1 Factory 2 Estimated factory overhead cost for fiscal year beginning June 1 $752,100 $600,300 Estimated direct labor hours for year 8,700 Estimated machine hours for year 16,350 Actual factory overhead costs for June $60,350 $51,670 Actual direct labor hours for June 780 Actual machine hours for June 1,280 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 Hide c. Journalize the entries to apply factory overhead to production in each factory for June. Factory 1 Factory 2 d. Determine the balances of the factory overhead accounts for each factory as of June 30, and indicate whether the amounts represent overapplied factory overhead orunderapplied factory overhead. Factory 1 $ SelectCreditDebitCorrect 2 of Item 3 SelectOverappliedUnderappliedCorrect 3 of Item 3 Factory 2 $ SelectCreditDebitCorrect 5 of Item 3 SelectOverappliedUnderappliedCorrect 6 of Item 3