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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.
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 1 $ 64,000 Direct materials 101,000 Home 2 $ 92,000 142,000 Home 3 $189,000 199,000 Assume Benson needs to allocate two major overhead costs ($51,750 of employee fringe benefits and $17,680 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 Weight of Base Allocated Cost 1 $ 0 2 0 3 0 Total $ 0 Indirect Materials: Home Allocation Rate x Weight of Base Allocated Cost 1 $ 0 2 X 0 3 Total 0 $ 0
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