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Adams Construction Company expects to build three new homes during a specific accounting period. The estimated direct materials and labor costs are as follows.
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 Direct labor Direct materials Home 1 $ 77,000 110,000 Home 2 $102,000 143,000 Home 3 $188,000 185,000 Assume Adams needs to allocate two major overhead costs ($73,400 of employee fringe benefits and $35,040 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: Allocation Home x Rate Weight of Base = 1 X 2 X 3 X Total Indirect Materials: Home 1 2 3 Total Allocated Cost = $ 0 = 0 = 0 $ 0 Allocated Cost = $ Allocation Rate x Weight of Base = X X = X The cost components to determine the total cost of each house: Expected Costs Direct labor Direct materials Fringe benefits Indirect materials Total cost 0 = 0 $ Home 1 Home 2 Home 3 Total $ 0 0 0 0 $ 0 0 $ 0
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