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please help with part c! It was the end of the fiscal year, and Kimberly was evaluating her company's MOH, Since her company uses normal
please help with part c!
It was the end of the fiscal year, and Kimberly was evaluating her company's MOH, Since her company uses normal costing and applies overhead based on direct labor hours, she anticipated a difference in the amount of MOH that was applied compared to the amount that was actually incurred. Indeed, there was a difference-and it seemed huge! Here is what she saw within the MOH account, a5 well as detail from the beginning of the year when the budgeted MOH rate was determined; Kimberly is aware of the following company policy regarding ary MOH difference 'any MOH difference that is deemed 'immaterial' should be written off in the current period; any MOH difference that was deteried mater ial should be prorated to the appropriate. accounts so as to better approximate octual costs." Kimberly also has the following additional detail regarding the inventory accounts. While she does not yet have a clear understanding of what amount might be considered material, 3,950 knows she has to first calculate the MOH balance. Calculate the budgeted MOH rate for Kimberly's company. (Round answer to 2 decimal places, es. 52.75) Budgeted MOH rate 5 (DLH Your answer is correct. Determine whether MOH is under-or overapplied, and by how much. MOHcost was by $ eTextbook and Media Assistance Used Atternpts: 1 of 2 used Since Kimberly is unsure if this amount would be considered material or not, she decides to do the work for both options so that she can bring it to her supervisor and ask for additional clarification regarding materiality. (Round any rates or proportions to four decimal places, eg. 0.2510 and final answers to 2 decimal places, es. 5,275.25.) 1. Show the journal entry if the MOH difference is to be written off entirely in the current period. (Credit occount titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) 2. Show the calculations and journal entry needed if the difference is to be prorated to the appropriate inveritory and cost accounts based on their ending balances. (Credit occount titles are outomatically indented when the amount it entered. Do not indent manually. List all debit entries before credit entries). 3. Show the calculations and journal entry needed if the difference is to be prorated to the appropriate inventory and cost accounts based on the amount of applied MOH in each account, (Credit occount titles are outomaticolly indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) 3. Show the calculations and journal entry needed if the difference accounts based on the amount of applied MOH in each account. (Cn entered. Do not indent manually. List all debit entries before credit entrie Step by Step Solution
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