When a company uses normal costing, the resulting MOH difference at year-end may be prorated to which accounts? Why are these accounts used, and what is the purpose of this proration process? What other method is used to address the MOH difference? Suppose Marsha and Gregunderestimated the cost of their hand-knitted wool mittens. As a result, they sold them at a price that left very little margin for them. Which of the company's costs is most likely underestimated-the direct materials, direct labor, or MOH? Explain the negative consequences of their underestimated product cost. Suppose a company currently allocates its MOH cost to three different product lines using one volume-based cost driver, machine hours. How might this result in under-or overcosted products within one or more product lines? If a manufacturing company organized its overhead costs into two pools, with each pool representing a key department, is this a form of ABC. job costing, or both? Explain under what circumstances these two departmental pools and overhead rates would be a very accurate and appropriate way for a company to allocate its MOH costs. Many supporters of the ABC methodology agree that it provides more accurate information than that obtained from a traditional job costing system. But there are drawbacks or costs associated with implementing and following through with an ABC system. What are those costs? Explain if or how the benefits of an ABC system might outweigh the costs