Exercise 12-8 Allocating costs among products LO 12-3 Thornton Construction Company expects to build three new homes during a specific accounting period. The estimated direct materials and labor costs are as follows: Direct labor Direct materials 61,000 98,000 $171,000 100,000 136,000 182,000 Assume Thomton needs to allocate two major overhead costs ($49,500 of employee fringe benefits and $16,720 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.) e Benefits: House Allocation Rate Weight of Base Allocated Cost Total Materialts HouseAllocation Rate Weight of Base Allocated Cost Prev 1 of3 Next >