Exercise 12-8 Allocating costs among products LO 12-3 Rundle Construction Company expects to build three new homes during a specific accounting period. The estimated direct materials and labor costs are as follows: points Expected Costs Home 1 Home 2 Home 3 Direct labor $68,e8e $ 95,88e $175,880 Direct materials 97,8ee 13e,eee 184,8e8 eBook Hint Print costs) among the three jobs. Assume Rundle needs to allocate two major overhead costs ($50,700 of employee fringe benefits and $24,660 of indirect materials ences 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.) ringe Benefits House Allocation Ratex Weight of Base Allocated C Total Indirect Materials: House Allocation Rate x Weight of Base = Allocated Cost 2 Total 0 The cost components to determine the total cost of each house: Expected Costs Direct labor Direct materials Fringe benefits Indirect Materials Home 1 Home 2 Home 3 Total Total cost