BXM Design Company employs a job order costing system and uses predetermined overhead rates to apply overhead to jobs. Variable overhead is applied based on direct labor hours, and fixed overhead is applied based on machine hours. In December 2006 , the company estimated the following data for 2007:

{Required:}

(a) Compute the predetermined variable and fixed overhead application rates that should be used for BXM Design Company in 2007.

(b) Job Number 96 was started and completed during August 2007. Work was performed in two departments, Casting and Finishing. The following data for Job Number 96 was gathered from the departments:

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Direct Labor Hours 1,200 Machine Hours 1,700 Variable Overhead..............$ 73,000 Fixed Overhead....................$116,000