Question
6 Fanning Construction Company expects to build three new homes during a specific accounting period. The estimated direct materials and labor costs are as
6 Fanning Construction Company expects to build three new homes during a specific accounting period. The estimated direct materials and labor costs are as follows. Expected Costs ints Direct labor Direct materials Home 1 $ 69,000 96,000 Home 2 $ 97,000 134,000 Hone 31 $174,000 198,000 Assume Fanning needs to allocate two major overhead costs ($34,000 of employee fringe benefits and $12,840 of indirect materials costs) among the three jobs. Required Choose an appropriate cost driver for each of the overhead costs and determine the total cost of each house. Note: Round "Allocation rate" to 2 decimal places.
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