For items 59-60:
The Magkaisa Company manufactures special purpose machines to order. On January 1, there were two jobs in process,
#705 and #706. The following costs were applied to these jobs in the prior year:
Job No.
Job No.
705
706
Direct material
$ 5,000
$ 8,000
Direct labor
4,000
3,000
Overhead
4,400
3,300
Total
$13,400
$14,300
During January, the following transactions took place:
 Raw material costing $40,000 was purchased on account.
 Jobs #707, #708, and #709 were started and the following costs were applied to them:
Job No.
Job No.
Job No.
707
708
709
Direct materials
$3,000
$10,000
$7,000
Direct labor
5,000
6,000
4,000







Job #705 and Job #706 were completed after incurring additional direct labor costs of $2,000 and $4,000,
respectively
Wages paid to production employees during January totaled $25,000.
Depreciation for the month of January totaled $10,000.
Utilities bills in the amount of $10,000 were paid for operations during December.
Utilities bills totaling $12,000 were received for January operations.
Supplies costing $2,000 were used.
Miscellaneous overhead expenses totaled $24,000 for January.
Actual overhead is applied to individual jobs at the end of each month using a rate based on actual direct labor costs.
59. January overhead rate:
60. Cost of Job 708: