Allocating costs among products

Stuart 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	$	80,000		$	96,000		$	171,000
Direct materials		104,000			137,000			185,000

Assume Stuart needs to allocate two major overhead costs ($52,050 of employee fringe benefits and $8,520 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: House Allocation Rate x Weight of Base = Allocated Cost 2 Total Indirect Materials: House Allocation Rate x Weight of Base = Allocated Cost Total Home 3 Total The cost components to determine the total cost of each house: Expected Costs Home 1 Home 2 Direct labor Direct materials Fringe benefits Indirect Materials Total cost 0 $