1. Compute a predetermined factory overhead rate for each alternative base, assuming that rates would have been determined using the total actual amount of factory overhead for the past five years to the total associated activity base for the same five-year period. ( 25 points) 2. For each of the past five years, determine the over- or underapplied overhead, based on the two predetermined overhead rates developed in (1). (50 points) 3. Select a predetermined overhead rate that the company should use, and discuss the basis for your recommendation. ( 25 points) 1. Compute a predetermined factory overhead rate for each alternative base, assuming that rates would have been determined using the total actual amount of factory overhead for the past five years to the total associated activity base for the same five-year period. ( 25 points) 2. For each of the past five years, determine the over- or underapplied overhead, based on the two predetermined overhead rates developed in (1). (50 points) 3. Select a predetermined overhead rate that the company should use, and discuss the basis for your recommendation. ( 25 points)