Pronghorn, a coffeemug 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 yearend, Pronghorn had accumulated Cost of Goods Sold in the amount of $
Pronghorn's business model is to maintain minimal WIP Inventory and FG Inventory, so these two accounts had balances of just
$ and $ respectively, on December Pronghorn does hold a fair amount of RM Inventory, however, so it will be able to
quickly fulfill its orders. As a result, its December RM Inventory all direct materials is $
Pronghorn utilizes a normal costing system, in its effort to have timely applied MOH information for each custom job, and its budgeted
MOH rate is $ direct labor hour. Budgeted MOH at the beginning of the year was $; actual MOH costs incurred by the
end of the year were $ Actual direct labor hours used were
a
Was Pronghorn's MOH cost for the year under or overapplied? By how much?
MOH cost was
by $
eTextbook and Media
