Bramble, a coffee$-$mug producer, generally conducts over half of its business in the last month of the calendar year due to holiday sales. By the end of December, its fiscal year$-$end, Bramble had accumulated Cost of Goods Sold in the amount of $$269,000.$ Bramble's business model is to maintain minimal WIP Inventory and FG Inventory, so these two accounts had balances of just $$34\mathrm{.}000$ and $$38,000,$ respectively, on December $31.$ Bramble does hold a fair amount of RM Inventory, however, so it will be able to quickly fulfill its orders. As a result, its December $31$ RM Inventory $($all direct materials$)$ is $$104,000.$

Bramble utilizes a normal costing system, in its effort to have timely applied MOH information for each custom job, and its budgeted MOH rate is $$\frac{2\mathrm{.}24}{?}$ direct labor hour. Budgeted MOH at the beginning of the year was $$174,000$; actual MOH costs incurred by the end of the year were $$212,000.$ Actual direct labor hours used were $85,000.$

$($a$)$

Vour answer is correct.

Was Bramble's MOH cost for the year under$-$or overapplied? By how much?

MOH cost was by $

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Attempts: $2$ of $5$ used

$($b$)$

Record the journal entry to close out that MOH difference by using the direct write$-$off method. $($Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.$)$

Account Titles and Explanation

Debit

Credit