Saved 1 Help Save & Ein A manufacturing uses a predetermined overhead rate of $19.50 per direct labor-hour. This predetermined rate was based on a cout formula that estimates $259,350 of total manufacturing overhead for an estimated activity level of 3,300 direct labor hours The company actually incurred $253,000 of manufacturing overhead and 12,800 direct labor hours during the period 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 close the underapplied or overapplied overhead increase or decrease the company's gross margin? By how much (All answers are whole numbers - unless specified otherwise. You should NOT include the sign or a comma E. you should type 1000 for one thousand. Negative numbers should be added with a minus sign, eg.-1000 for a decrease or loss of one thousand) 055 ON 1. Manufacturing overhead 2. The gross margin would underapplied $ 3.400 by by Help Save & Ext A company has two manufacturing departments - Machinery and Assembly. The company considers all of its manufacturing overhead costs to be fixed costs. It provided the following estimates at the beginning of the year as well as the information with respect to Jobs A and B Sub 2. Estimated Data Manufacturing overhead Direct labor-hours Machine-hours Machining $4,212,000 18.000 234.000 5 points Assembly $ 324,000 234.000 13,000 Total $4,536,eee 252,000 247,600 8 00:54:38 Job Direct labor-hours Machine-hours Machining Assembly 5 10 11 2 Total 15 13 Machining Assembly Total Job Direct labor-hours Machine-hours 12 3 15 1. If the company uses a plantwide predetermined overhead rate with direct labor-hours as the allocation base, how much manufacturing overhead cost would be applied to Job A? Job B? 2. Assume that the company uses departmental predetermined overhead rates. The Machining Department is allocated based machine-hours and the Assembly Department is allocated based on direct labor-hours. How much manufacturing overhead cost would be applied to Job A? Job B? (Round your intermediate calculations and final answers to 2 decimal places.) 1 Manufacturing overhead applied Job A Manufacturing overhead applied Job B 11 See 19 2. 15 13 Job B Direct labor-hours Machine-hours Machining 4 12 Assembly 5 3 Total 9 15 1. If the company uses a plantwide predetermined overhead rate with direct labor hours as the allocation base how much manufacturing overhead cost would be applied to Job A? Job B? 2. Assume that the company uses departmental predetermined overhead rates. The Machining Department machine-hours and the Assembly Department is allocated based on direct labor-hours. How much manufacturing be applied to Job A? Job B? (Round your intermediate calculations and final answers to 2 decimal place) 1. Manufacturing overhead applied Job A Manufacturing overhead applied Job B 2. Manufacturing overhead applied Job A Manufacturing overhead applied Job B