If you can also put an example. thank you so much

Terri Ronsin had recently been transferred to the Home Security systems Division of National Home products. Shortly after taking over her new position as divisional controller. She was asked to develop the division's predetermined overhead rate for the upcoming year. The accuracy of the rate is important because it is used throughout the year. and any overlapped overhead is closed out to cost of goods sold at the end of the year. National Home Products uses direct labour-hours in all of its divisions as the allocation base for manufacturing overhead. To compute the predetermined overhead rate. Terri divided her estimate of the total manufacturing overhead for the coming year by the production manager's estimates of the total direct labour-hours for the coming year. She took her computations to the division's general manager for approval but was quite surprised when he suggested a modification in the base. Her conversation with the general manager of the Home Security Systems Divisions, Harry Irving, went like this Ronsin:Here are my calculations for next year's predetermined overhead rate. If you approve, we can enter the rate into the computer on January 1 and be up and running in the job costing system right away this year. Irving:Thanks for coming up with the calculations so quickly, and there is, however, one slight modification I would like to see. Your estimate of the total direct labour -hours for the year is 440, 000 hours. How about cutting that 10 about 420, 000 hours? Ronsin:I don't know if can do that .The production manager says she will need about 440, 000 direct labour-hours to meet the sales projections for the year. Besides, there are going to be over 430, 000 direct labour -hours during the year and sales are projected to be higher next year. Irving: Terri, I know all of that I would still like to reduce the direct labour-hours in the base to something