Osborn Manufacturing uses a predetermined overhead rate of $20.00 per direct labor-hour. This predetermined rate was based on a cost formula that estimates $276,000 of total manufacturing overhead for an estimated activity level of 13,800 direct labor-hours The company actually incurred $275,000 of manufacturing overhead and 13,300 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? 1. Manufacturing overhead 2. The gross margin would by Rovinsky Corporation, a company that produces and sells a single product, has provided its contribution format income statement November Sales (7,500 units) Variable expenses Contribution margin Fixed expenses Net operating income $375,000 225,000 150,000 103,500 $ 46,500 If the company sells 7400 units, its net operating income should be closest to: (Do not round intermediate calculations.)