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. Expected Coats Direct labor Direct materials Home 1 $80,000 91,000 Home 2 $ 99,000 134,000 Home 3 $180,000 188,000 Assume Adams needs to allocate two major overhead costs ($73,400 of employee fringe benefits and $20,650 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 x $ 0 1 0 2 3 Tot 0 0 Indirect Materials: Home Allocation Ratex Weight of Base Allocated Cost $ 1 2 3 DOO rate" to 2 decimal places.) Fringe Benefits: Home 1 0 2 Allocation Rate * Weight of Base = Allocated Cost x $ 01 = $ 0 0 $ X 11 3 x 11 0 0 Total $ Indirect Materials: Home Allocation Rate x Weight of Base = Allocated Cost $ x 11 $ 0 0 2 11 XX 3 11 Total olo $ Home 3 Total $ o 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 $ $ 0 0 0 0 $ 0