es Damas Corp. uses a predetermined overhead rate of $30.00 per direct labour-hour. This predetermined rate was based on 12,000 estimated direct labour-hours and $360,000 of estimated total manufacturing overhead. The company incurred actual total manufacturing overhead costs of $356,500 and 11,500 total direct labour-hours during the period. Required: 1. Determine the amount of underapplied or overapplied manufacturing overhead for the period. Manufacturing overhead underapplied The gross margin would $ 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? decrease 11,500 by $ 8,000

Damas Corp. uses a predetermined overhead rate of $30.00 per direct labour-hour. This predetermined rate was based on 12,000 estimated direct labour-hours and $360,000 of estimated total manufacturing overhead. The company incurred actual total manufacturing overhead costs of $356,500 and 11,500 total direct labour-hours during the period. Required: 1. Determine the amount of underapplied or overapplied manufacturing overhead for the period. 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