Exercise 12-8A (Algo) Allocating costs among products LO 12-3 Adams Construction Company expects to build three new homes during a specific accounting period. The estimated direct materials and labor costs are as follows ed Expected Costs Direct labor Direct materials Home 1 $ 65,000 107,000 Hone 2 Hone $100,000 $178,000 149,000 195,000 OK Assume Adams needs to allocate two major overhead costs ($52,650 of employee fringe benefits and 518,040 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.) ences Fringe Benefits: Home 1 2 3 Total Allocation Rate * Weight of Base - Allocated Cost 5 0 0 0 5 0 Allocation Rate * Weight of Base - Allocated Cost 5 0 Indirect Materials: Home 1 2 3 Total 0 0 0 5 Home 3 Total 5 The cost components to determine the total cost of each house: Expected Costs Home 1 Home 2 Direct labor Direct materials Fringe benefits Indirect materials Total cost $ 5 0 0 0 0 0 Os