Question 4 [20 Marks] PART A 18 Marks] Twist Corporation expected annual overhead cost is $1,500,000 and an estimated activity level of 50,000 direct labour-hours. The firm predetermined rate is based on a cost formula. The company incurred actual total manufacturing overhead costs of $1,769,000 and 61,000 total direct labour- hours during the period. Required: 1. Determine the amount of underapplied or overapplied manufacturing overhead for the period. 16 Marks 2. If the entire amount of the underapplied or overapplied overhead is closed out to cost of goods sold what would be the effect of the underapplied or overapplied overhead on the company's gross margin for the period? 12 Marks]