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Benson Construction Company expects to build three new homes during a specific accounting period. The estimated direct materials and labor costs are as follows: Expected
Benson 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 Home 3 Home 1 Home 2 $ 69, e00 $1, $186, Direct 131,000 103,000 180,000 materials Assume Benson needs to allocate two major overhead costs ($53,250 of employee fringe benefits and $33,120 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: xWeight of Base House Allocation Rate Allocated Cost $ 1 0 X 2 0 X 3 0 X $ 0 Total Indirect Materials: House Allocation Rate Weight of Base Allocated Cost x 1 0 2 10 10 $ 10 Total 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 A O EA EA
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