Exercise 3-4 (Algo) Underapplied and Overapplied Overhead (L03-4) Osborn Manufacturing uses a predetermined overhead rate of $20.10 per direct labor-hour This predetermined rate was based on a cost formula that estimates $279,300 of total manufacturing overhead for an estimated activity level of 13,900 direct labor hours. The company actually incurred $277.000 of manufacturing overhead and 13,400 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 I Exercise 3-5 (Algo) Journal Entries and T-accounts (L03-1, L03-2] The Polaris Company uses a job-order costing system. The following transactions occurred in October A Raw materials nurchased on a $210.000 C Focus B O ch A O 2 # 3 8 8 7 $ 4 6 0 5 8 9 2 D R T TE