Fossil Manufacturing uses a predetermined overhead rate of $17.80 per direct labot-hour. This predetermined rate was based on 11.000 estimated direct taborhours and $195.800 of estimated total manufacturing overhead. The company incurted actual manufacturing overhead costs of $194,000 and 10,500 direct labor-hours. Required: a. Determine the amount of underapplied or overapplied manufacturing overhead for the period. b. Assuming that the company closed manufacturing overhead to cost of goods sold, make the joumal entry to close manufacturing ovethead c. What is the effect of this entry on the company's gross margin