Predetermined overhead rate = Total budgeted overhead for both departments/Total budgeted direct labor hours for both departments

=(100000+500000)/(50000+10000)

= 600000/60000

=$10 per direct labor hour

Step 1: Compute the predetermined overhead rate.

Budgeted Overhead in Department A & B / Total Expected Direct Labor Hours = Predetermined Overhead Rate

$600,000 / 60,000 hours = $10 per direct labor hour

Step 2: Compute the total manufacturing costs.

6,000 DLH are the total DLH used by Department A and B for Job 10

Step 3: Compute the per-unit manufacturing cost.

Total Manufacturing Costs / Units Produced = Per-unit Manufacturing Costs

$116,000 / 10,000 = $11.60

Successful completion of Task 10

Work in Process, Department A, Debit Balance of $36,000
Work in Process — Department B — Expense $51,000
$20,000 to be credited for Materials Inventory
$87,000 to be credited to Manufacturing Overhead
Wages Payable Credit totaling $36,000

The purchase of Job 10

Debit: Finished Goods Inventory $78,000 Credit: Accounts Receivable $78,300 Credit: Sales Revenue $78,300 Credit: Cost of Goods Sold $78,000 Credit: Cost of Goods Sold $300 Debit: Accounts Receivable $78,300 Credit: Sales Revenue $78,300 Credit: Cost of Goods Sold $300
Successful completion of Task 10

In order to finish Job 10, you need to make two entries in your diary. The first item details the expenses incurred for the job's supplies as well as the labor required to complete it. The charges that were incurred for the job's overhead were recorded in the second entry of the journal. The direct labor cost of $36,000 is credited to the Work in Process-Department A account as well as the Work in Process-Department B account. The cost of the supplies, which is $20,000, is debited to the Materials Inventory account. The cost of the manufacturing overhead, which comes to $87,000, is deducted from both the Work in Process account for Department A and the Work in Process account for Department B. The direct labor cost of $36,000 is credited to the account that is responsible for paying salaries.

The purchase of Job 10

The purchase and selling of Job 10 each need their own entry in the logbook. The income earned through the selling of the employment is the subject of the first entry. The second column details the total cost of the project in addition to the cost of the products that were sold. The proceeds of the sale of Job 10, totaling $78,300, are deposited into the accounts receivable account, which results in a negative in that account. The same amount is credited to the account that tracks income from sales. The whole amount of $78,000 that was spent on Job 10 has been deposited to the account for completed goods inventory. The same amount is deducted from the account that tracks the cost of products sold. In the end, an extra $300 is credited to the account that is responsible for the cost of products sold. This amount represents the difference between the income made from the sale of Job 10 and the cost of Job 10.

Utilization of a Predetermined Overhead Rate by the Bostian Company

The Bostian Company allocates the overhead expenses associated with tasks based on a plant-wide rate that has been defined. This price is determined by the amount of direct work hours that are anticipated to be performed. The preset rate is arrived at by dividing the overhead expenditures planned for the project by the direct labor hours budgeted for the project. During the course of the previous year, the Bostian Company's Department A and Department B planned overhead expenses of $100,000 and $500,000, respectively. The hours of direct work that were allotted in the budget were split as follows: 50,000 for Department A and 10,000 for Department B. Therefore, the fixed overhead cost for Department A is $2, whereas the fixed overhead cost for Department B is $50.

The cost of job number 10

Bostian Company rates its work at cost + 30 percent. The total amount that Job 10 will cost is $144,000. This includes the cost of supplies, the cost of direct labor, and the cost of overhead. Therefore, the cost of Job 10 is $187,200, which is equal to $144,000 plus 30%.

Step 1: 

Step 1: Fist step is to compute for the Predetermine Overhead  Rate

 Predetermine Overhead  Rate = Total Budgeted Overhead of the 2 departments/ Total Expected Activity

                                                       = ($100,000+500,000)/(50,000+10,000)

                                                       = $10

Step 2: Allocate the Overhead Rate to the 2 Departments 

For Department A =Budgeted Overhead/ Expected Activity= $100,000/50,000 = $2

For Department B= Budgeted Overhead/Expected Machine Hours=  500,000/50,000 = $10

Thus, 

For Department A = Direct Labor Hours x $2 = 5,000 x $2 = $10,000

For Department B = Machine Hours x  $10 = 1,200 x  $10 = $12,000

TOTAL OVERHEAD ALLOCATED = $10,000 + $12,000 = $22,000

Step 3 : Calculate the total Manufacturing Costs

Direct Materials                                                $20,000

Direct Labor ( $30,000 +$6,000)                  $36,000

Overhead Allocated                                         $22,000

Total Manufacturing Costs                               $78,000

Step 4: Entry (Requirment)

Thank and Goodluck. I hope I was able to help you and hope you can give me a positive feedback :)