Factory Overhead Rates, Entries, and Account Balance Sundance Solar 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 March 1 $564,720 $630,800
Estimated direct labor hours for year 8,300
Estimated machine hours for year 23,530
Actual factory overhead costs for March $45,260 $54,720
Actual direct labor hours for March 750
Actual machine hours for March 1,840

Required:
a. Determine the factory overhead rate for Factory 1.
b. Determine the factory overhead rate for Factory 2.