1. I dont understand how I am getting this wrong. I am doing, $19.60 * 12,900 = 252,840?

2. I understand once I figure out my answer then I need to subtract it from $255,000, correct?

I appriciate all the study help!!!

Osborn Manufacturing uses a predetermined overhead rate of $19.60 per direct labor hour. This predetermined rate was based on a cost formula that estimates $262.640 of total manufacturing overhead for an estimated activity level of 13,400 direct labor-hours. The company actually incurred $255.000 of manufacturing overhead and 12,900 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? Answer is not complete 1 Manufacturing Overhead The grows margin would ty underapplied decrease 252 840 2 by 47