Graded Chapter 3 Homework i 3 Saved 1.6 points eBook Osborn Manufacturing uses a predetermined overhead rate of $19.50 per direct labor-hour. This predetermined rate was base cost formula that estimates $259,350 of total manufacturing overhead for an estimated activity level of 13,300 direct labor-hou The company actually incurred $253,000 of manufacturing overhead and 12,800 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 dispose of the underapplied or overapplied overhead increase or decrease the company's gross margin? By how much? 1. Manufacturing overhead Hint 2. The gross margin would by by Ask Print