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.

Argue in favor of the general manager$$s request to reduce the direct labor$-$hours in the predetermined overhead rate computation to $420,000$ direct labor$-$hours.

Remember to use logic and the accounting principles that you have learned to develop your argument.