Calculating predetermined OH rates: ZERO, Ltd. is a manufacturer of custom order gaming chairs and uses a job order costing system. For the upcoming year 2021, ZERO estimates that direct materials costs will be $1,640,000; direct labor costs will be $942,000; and, factory overhead will be $1,160,000.

1. Calculate the firms predetermined OH rate assuming it uses direct materials costs as its activity base. Express your answer as a percentage (%) and round to the nearest whole number (e.g. 42.55% = 43%).
2. Calculate the firms predetermined OH rate assuming it uses direct labor costs as its activity base. Express your answer as a percentage (%) and round to the nearest whole number (e.g. 42.55% = 43%).

Applying Overhead Costs: Laughing Dog, Co. is a manufacturer that uses job order costing. At the beginning of the accounting period, the firm estimates that its total overhead costs will be $855,000. The company applies overhead based on machine hours and estimates that it will use 1,200 machine hours during the period. Assume that Job S7 uses 25 machine hours during the period. How much in overhead costs should the firm apply to Job S7?