I highly recommend that you sit down with your manager and discuss the criteria for receiving this amount. Perhaps you recieved was for an average rating and there are goals you can set to reach a higher raise for next year. Based on the company's financial situation, it could be an above average amount, which may boost your ego. Talking with your manager is a great first step to resolving this setback. I'm curious as to what employers' normal expectations are for the number of hours per week that their employees should work.
Every company is different.
Sometimes top management might say one thing and actually expect another. I will get an MS in Software Engineering this fall. I don't think it would hurt to include both degrees. Certainly, including the degree in engineering at least lets an employer know that you have one, which is important. Also, you could be applying to companies that can use engineers as well as software developers, so maybe it would serve you to show that you are qualified as both.