It was the end of the fiscal year, and Jennifer was evaluating her company's MOH. Since her company uses normal costing and applies over head based on directlabor hours, she anticipated a difference in the amount of M OH that was applied compared to the amount that was actually incurred Indeed, therewas a difference-and itseemed huge! Here is what she saw within the MOH account as well as detail from the beginning of the year when the budgeted MOH rate was determined: Budgeted MOH cost $40,560 Budgeted directlabor hours 26,000 hours Actual MOH cost $43,000 Actual directlabor hours 24,000 hours Jennifer is aware of the following company policy regarding any MOH difference: "any MOH difference that is deemed immaterial" should be written off in the current period; any MOH difference that was deemed material' should be prorated to the appropriate accounts so as to better approximate actual cost.' Jennifer also has the following additional detail regarding the inventory accounts. Applied MOH End Bal. WithnEnd Bal RM Inventory $5,80 WIP Inventory $2,736 FG Inventory 5,472 Cost of Goods Sold B5,760 25,992 While she does notyet have a clear understanding of what amount might be considered "material,* 2 150 knows she has to firstcalculate the MOH balanceYour answer is partially oor rect Determine whether MOH is under- or overapplied, and by how much. MOH outwas underapplied by $ 2440 e Textbook and Media Save for Later Attempts: 1 of 2 used Submilt