705 PART 1 The Milkshake Company creates custom-made equipment for specific applications. There were two jobs in progress on January 1: #705 and #706. In the previous year, the following charges were applied to these jobs: Job No. 706 Direct material $ 5,000 $ 8,000 Direct labor 4,000 3,000 Overhead 2 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: 707 JOB 708 $10,000 6,000 709 Direct materials Direct labor $3,000 5,000 $7,000 4,000 * 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. Required: a. Determine the January overhead rate. b. Determine the cost of each job. c. Prepare a statement of cost of goods manufactured