For each of the past five years, determine the over-or under applied overhead, based on the two predetermined overhead rates developed in (A)

Year 5 Year 4 Year 3 Year 2 Year 1 Actual overhead $ 790,000 $ 870,000 $ 935,000 $ 845,000 $ 760,000 Applied overhead 777,000 882,000 924,000 840,000 777,000 (Over-) underapplied overhead $ 13,000 $ (12,000) $ 11,000 5,000 $ (17,000) Direct labor cost $3,885,000 $4,410,000 $4,620,000 $4,200,000 $3,885,000 Machine hours 93,000 104,000 111,000 100,400 91,600 In teams: A. Calculate 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. B. For each of the past five years, determine the over- or underapplied overhead, based on the two predetermined overhead rates developed in (A). C. Select a predetermined overhead rate that the company should use, and discuss the basis for your recommendation. ication