Exercise 12-8 Allocating costs among products LO 12-3 Walton Construction Company expects to build three new homes during a specific accounting period. The estimated direct materials and labor costs are as follows: ome 3 $181,000 200,000 Expected Costs Direct labor Home 1 Home 2 $68,000 91,000 $103,000 137,000 Direct materials Assume Walton needs to allocate two major overhead costs ($52,800 of employee fringe benefits and $29,960 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: Allocated Cost House Allocation Rate Weight of Base x 68,000 1 C 2 0 X 3 0 C $ 0 Total Indirect Materials: House Allocation Rate Allocated Cost Weight of Base x 1 C 2 0 X 0 Total C 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 S 0 $ S Total cost C 0 $ C 0