I am a homebuilder. I have built three homes. Below is a summary of the direct costs

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I am a homebuilder. I have built three homes. Below is a summary of the direct costs for the houses.

Total overhead costs for supervisory salaries and indirect materials amount to $84,000.
Since there are 3 houses, I will allocate 1/3 of $84,000 to each house. Do you like my allocationmethod?

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Management Accounting

ISBN: 9780730369387

4th Edition

Authors: Leslie G. Eldenburg, Albie Brooks, Judy Oliver, Gillian Vesty, Rodney Dormer, Vijaya Murthy, Nick Pawsey

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Question Posted: Jan 10, 2013 06:58 AM

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I am a homebuilder. I have built three homes. Below is a summary of the direct costs

Question:

$140,000 $70,000 Direct Materials Direct Labor Overhead $90,000 210,000 130,000 60,000

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Computation of the total cost and allocation of overheads to three houses Total over head cot alloca...View the full answer

Management Accounting

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