Kennedy, (aka JFK) was recently hired by Weiss Inc.as a controller. He was formerly employed by Top Notch CPAs. This CPA firm performs an annual audit to ensure Weiss is playing by the rules and all information released to the public is presented in fair, accurate and ethical manner. Kennedy's first duty was to develop a predetermined overhead rate for 2023 . This rate is important since it is used continuously throughout the year as a method to apply overhead and misapplied overhead is closed out to cost of goods sold. This seemed simple enough. He used the production manager (Eisenhower, aka Ike) estimate of production hours (300,000) and the manufacturing overhead estimated for the year ($3,015,000) and developed the predetermined oh rate (POHR). The estimated manufacturing overhead was established by using 2022 numbers as a baseline and then adjusting for 2023 based on changes in expected demand. This rate was applied to manufacturing costs. JFK brought this calculation to his immediate supervisor, Chief Financial Officer (Truman, aka Harry). JFK was caught off guard by the demand of Harry (maybe it was a suggestion) that he "amends" the estimate of production hours down to about 280,000 hours. JFK explained his reasoning and his discussions with Ike, but Harry became insistent that JFK needed to reduce that estimate of production hours. Finally, Harry explained more thoroughly. By shaving off the estimate of production hours, Weiss could "produce" a nice little kicker at the end of the year (when actual results adjusted this reserve account). When misapplied overhead was closed out to COGS it was like magic and an income boost. Rather than letting the income boost fall to retained earnings, management paid holiday bonuses. It was like magic and made everyone happy, why change now. 1) Explain in detail using sample (made up) numbers- how the manipulation of predetermined overhead rate could result in a net operating income "boost" at year end. Would it really "create income"? 2) Should JFK go along with this and be the team player / Why or why not? 3) What ethical standards should JFK be concerned with? 4) If this idea does create income, where does the cash come from? 5) Site another example in real life, of a business or person that used accounting "magic" to achieve a business goal. Give some details and explain end result