CASE S _ } 1 Ethics and the Manager [ LU 3. LOG. LOTT IT Emily Carrigan was recently transferred to the Appliances Division of Del Over her new position as divisional controller , Carrigan was asked to deve! overhead rate for the upcoming veal . The accuracy of the rate is important labour- hours in all of its divisions as the allocation base for manufacturing To compute the predetermined overhead rate . Carrigan divided her estimate for the coming Year by the production manager's estimate of the total direct She took her computations to the division's general manager for approval } suggested a modification in the base . Her conversation with the general me Harry Dafoe , went like this? Carrigan . Here are my calculations for next year's predetermined overhead the rate into the computer on January 1 and be up and running in the job - 0 VEZI Dafoe : Thanks for coming up with the calculations so quickly . They look modification I'd like to see . Your Estimate of the total direct labour - hours { about cutting that to about 105. 090 hours