You are the accountant for Mon Inc a manufacturer of automobiles Mon Inc applies overhead using a pre determined overhead rate based on direct labour hours At the beginning of the year, manufacturing overhead was estimated to be $900,000, machine hours were estimated to be 150,000 hours, and direct labour hours were estimated to be 750,000 By the end of the year, the company actually used 148.000 machine hours, 741,000 direct labour hours, and incurred $863,000 in manufacturing overhead costs Part 1 Compute the company's pre-determined overhead rato (round two decimal places) Part 2 Determine the amount and indicato if the overhead is under-applied or over-applied for the period Part 3 How will be adjustment to fix the under-applied or over applied overhead from Part impact net income? (Increase or Decrease?)