Osborn Manufacturing uses a predetermined overhead rate of $1970 per direct labor-hour. This predetermined rate was based on a cost formula that estimates $265,950 of total manufacturing overhead for an estimated activity level of 13,500 direct labor-hours The company actually incurred $260.000 of manufacturing overhead and 13.000 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 Soid. Would the journal entry to dispose of the underapplied or overapplied ovethead increase or decrease the company's gross margin? By how much