Cretin Enterprises uses a predetermined overhead rate of $21.70 per direct labor-hour. This predetermined rate was based on a cost formula that estimated $175,770 of total manufacturing overhead for an estimated activity level of 8,100 direct labor-hours. labor-hours during the period. Required: The company incurred actual total manufacturing overhead costs of $179,500 and 8,230 total direct 1. Determine the amount of underapplied or overapplied manufacturing overhead for the period. Manufacturing by erhead 2. Assuming that the entire amount of the underapplied or overapplied overhead is closed out to cost of goods sold, what would be the effect of the underapplied or overapplied overhead on the company's gross margin for the period? The gross margin would by