TIF 16-2 Predetermined Overhead Rates As an arsatant cost acceentant for Firwall industriec, you have bees anilesed se rview the has narrowed the poisitile altenative overhead bases to direct labor cont and mactive haurs for the past the years, the fobowing data have been gatherndt would have been detiermined uning the toital actual amoont of factory ovrthend foe the pant five years to the tocal associated activity base for the same five grar period. two predetermined overhead rates developed in (1). Xi. - Select a predetermined overhead nite that the compusy sbovid oses, and diacum the basis for your recoinmenitation. Requirement 1: Compute a predetermined factory overhead rate for each alternative base. Requiroment 1 : Direct Labor Machine Cost Requirement 2: For each of the past five years, determine the over- or underapplied overhead, based on the two predetermined overhead rates developed in (1). Requirement 3: Select a predetermined overhead rate that the company should use and discuss the basis for your recommendation