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The Hyman Company manufactures special purpose machines to order. On January 1, there were two jobs in process, #705 and #706. The following costs were

The Hyman 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.
705 706
Direct material P 5,000 P 8,000
Direct labor 4,000 3,000
Overhead 4,400 3,300
Total P13,400 P14,300

During January, the following transactions took place:

* Raw material costing P40,000 was purchased on account.
* Jobs #707, #708, and #709 were started and the following costs were applied to them:

JOB
707 708 709
Direct materials P3,000 P10,000 P7,000
Direct labor 5,000 6,000 4,000

* Job #705 and Job #706 were completed after incurring additional direct labor costs of P2,000 and P4,000, respectively
* Wages paid to production employees during January totaled P25,000.
* Depreciation for the month of January totaled P10,000.
* Utilities bills in the amount of P10,000 were paid for operations during December.
* Utilities bills totaling P12,000 were received for January operations.
* Supplies costing P2,000 were used.
* Miscellaneous overhead expenses totaled P24,000 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. Compute cost of goods manufactured.

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