6. Barker Construction operates two lines of business: building homes to customer specifications and constructing small projects and other types of home improvements. Traditionally, overhead has been applied to both types of construction projects using direct labor hours worked. Based on anticipated demand, expected direct labor hours were 20,000 for custom homes and 2,000 hours for small construction projects. This year, Barker has identified four different types of labor related to the overhead costs incurred. The costs and related labor used for each type of activity is identified below. Department Materials Handling Inspection Cleaning Detailing Expected Costs $40,000 10,000 1,980 5,000 Indirect Hours (Custom Homes) 1,000 2,000 250 500 Indirect Hours (Other Projects) 3,000 500 250 125 During the year, Barker Construction completed a custom home for a client. Shown below are the total hours of labor required to complete construction of this home: Direct Materials Handling Inspection Cleaning Detailing 700 hours 10 hours 100 hours 20 hours 120 hours Required: a. Using traditional costing, determine the overhead rate(s) and apply overhead to the completed house. b. Using activity-based costing, determine the overhead rate(s) and apply overhead to the completed house