You are the accountant for Mon Inc., a manufacturer of automobiles. Mon Inc. applies overhead using a pre-determined $700,000, machine hours were estimated to be 125,000 hours, and direct labour hours were estimated to be 500,000 By the end of the year, the company actually used 128,000 machine hours, 516,000 direct labour hours, and incurred $712,000 in manufacturing overhead costs. Part 1 Compute the company's pre-determined overhead rate (round two decimal places) 5.60 Part 2 Determine the amount and indicate if the overhead is under-applied or over-applied for the period. Part 3 How will the adjustment to fix the under-applied or over-applied overhead from Part 2 impact net income? (Increase or Decrease?) increase Vindow