Allocating costs among products Fanya 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 $40,000 30,000 Home 2 $60,000 50,000 Home 3 $100,000 80,000 Assume Fanya needs to allocate two major overhead costs ($80,000 of employee fringe benefits and $40,000 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 your figures to 3 decimal points