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Chocolaterie de Geneve, SA, is located in a French-speaking canton in Switzerland. The company makes chocolate truffles that are sold in popular embossed tins. The company has two processing departments - Cooking and Molding. In the Cooking Department, the raw ingredients for the truffles are mixed and then cooked in special candy-making vats. In the Molding Department, the melted chocolate and other ingredients from the Cooking Department are carefully poured into molds and decorative flourishes are applied by hand. After cooling, the truffles are packed for sale. The company uses a process costing system. The T-accounts below show the flow of costs through the two departments in April: Work in Process-Cooking Balance 4/1 11,000 Transferred out 764,000 Direct materials 335,000 Direct labor 263,000 Overhead 191,000 Work in Process-Molding Balance 4/1 20,000 Transferred out 979,000 Transferred in 764,000 Direct labor 121,000 Overhead 93,000 Required: Prepare journal entries showing the flow of costs through the two processing departments during April. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Osborn Manufacturing uses a predetermined overhead rate of $18.80 per direct labor-hour. This predetermined rate was based on a cost formula that estimates $236,880 of total manufacturing overhead for an estimated activity level of 12,600 direct labor-hours. The company actually incurred $233,000 of manufacturing overhead and 12,100 direct labor-hours during the period. Required: 1. Determine the amount of underapplied or overapplied manufacturing overhead for the period. 2. Assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold. Would the journal entry to dispose of the underapplied or overapplied overhead increase or decrease the company's gross margin? By how much? 1 Manufacturing overhoud 2. The gross margin would by by