Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Adams Construction Company expects to build three new homes during a specific accounting period. The estimated direct materials and labor costs are as follows. Expected

Adams 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 Home 1 Home 2 Home 3
Direct labor $ 63,000 $ 94,000 $ 188,000
Direct materials 100,000 146,000 183,000

Assume Adams needs to allocate two major overhead costs ($69,000 of employee fringe benefits and $25,740 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. (Round "Allocation rate" to 2 decimal places.

Fringe Benefits:
Home Allocation Rate x Weight of Base = Allocated Cost
1 x = $0
2 x = 0
3 x = 0
Total $0
Indirect Materials:
Home Allocation Rate x Weight of Base = Allocated Cost
1 x = $0
2 x = 0
3 x = 0
Total $0
The cost components to determine the total cost of each house:
Expected Costs Home 1 Home 2 Home 3 Total
Direct labor $0
Direct materials 0
Fringe benefits 0
Indirect materials 0
Total cost $0 $0 $0 $0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Markets Products And Marketing

Authors: David Parmerlee

1st Edition

0658001337, 978-0658001338

More Books

Students also viewed these Accounting questions

Question

7. Compute an expression for

Answered: 1 week ago

Question

Discuss the history of human resource management (HRM).

Answered: 1 week ago