Exercise 3-2 Under-Applied and Over-Applied Overhead This predetermined rate was based on a cost formula that estimates $218 total manufacturing f $18.20 per direct labor-hour for an estimated activity level of 12,000 direct labor 0 and 18,400of Osborn Manufacturing used a predetermined rate o hours 1. The company incurred actual manufacturing overhead cost of $215.00 11,500 total direct labor-hours during the period I. Dectermine the amount of under-applied or over-applied manufacturing 2. Assuming that the entire amount of the under-applied or over-applied Required: overhead for the period. overhead is closed out to Cost of Goods Sold, what would be the effect of the under-applied or over-applied overhead on the company's gross margin for the period? Exercise 3-3 Applying Overhead; Computing Unit Cost and Selling Price A comparn ead cost to completed jobs on the basis of 125% of the The joh cost sheet for job 313 shows that $10,000 in direeen on the job and that $12,000 in dint