Osborn Manufacturing uses a predetermined overhead rate of $1880 per direct labor-hour. This predetermined rate was based on a cost formula that estimates $236,880 of total manufacturing oveihead for an estimated activity level of 12,600 direct labor-hours. The company actually incured $233,000 of manufacturing overhead and 12,100 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 underoppled 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