Question: Explain how shaving 5 % off the estimated direct labor - hours in the base for the predetermined overhead rate usually results in a big

Explain how shaving 5% off the estimated direct labor-hours in the base for the predetermined overhead rate usually results in a big boost in net operating income at the end of the fiscal year.
2. What are the possible alternatives for Jennifer in this situation?
3. Should Jennifer go along with the general manager's request to reduce the direct labor-hours in the predetermined overhead rate computation to 105,000 direct labor-hours? Why or why not?

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