#3

answer my question. all the info is there i am not paying you more when i pay a monthly subscription already. i will report you.

It was the end of the fiscal year, and Amara 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, as well as detail from the beginning of the year when the budgeted MOH rate was determined: Amara 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 costs." Amara also has the following additional detail regarding the inventory accounts. Amara 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 apptoximate actual costs.' Amara 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," Amara knows she has to first calculate the MOH balance. 1. The journal entry if the MOH difference is to be written off entirely in the current period. After going to her supervisor with the above work, Amara finds out that the company considers an MOH difference to be "material" if it is greater than 5% of the actual MOH cost for that period (anything less is considered immaterial). Based on this threshold, which of the above options should Amara use this year? Explain the advantages and disadvantages of each option. 2. The journal entry needed tif the difference is to be prorated to the appropriate inventory and cost accounts based on their ending balances. 3. The 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