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Please answer both parts of questions below. 1) 2) 16 Exercise 3-4 Underapplied and Overapplied Overhead [LO3-4) 10 points Osborn Manufacturing uses a predetermined overhead
Please answer both parts of questions below.
16 Exercise 3-4 Underapplied and Overapplied Overhead [LO3-4) 10 points 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 eooRequired: 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? References . Manufacturing overhead by 2 The ors rangn woud Reference links 1) 2)
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