Exercise 12-8A (Algo) Allocating costs among products LO 12-3 Baird Construction Company expects to build three new homes during a specific accounting period. The estimated direct materials and labor costs are as follows. Expected Costs Home 1 Home 2 Home 3 Direct labor 574,000 $ 107,000 $ 174,000 Direct materials 100,000 135,000 184.000 Assume Baird needs to allocate two major overhead costs ($71,000 of employee fringe benefits and $33,520 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 x Weight of Base = Allocated Cost x = $ 2 3 Total Indirect Materials: Home Allocation Rate x Weight of Base = Allocated Cost X 2 11 11 1 x X 3 Tota The cost components to determine the total cost of each house: Expected Costs Home 1 Home 2 Home 3 Total Direct labor O Direct materials Fringe benefits Indirect materials Total cost References Worksheet Difficulty: 2 Medium Exercise 12-8A (Algo) Learning Objective: 12-03 Identify the Allocating costs among most appropriate cost driver. products LO 12-3Exercise 12-11A (Algo) Allocating to solve a timing problem LO 12-3 Walton Air is a large airline company that pays a customer relations representative $14,800 per month. The representative, who processed 1, 170 customer complaints in January and 1,450 complaints in February, is expected to process 22,200 customer complaints during the year. Required a. Determine the total cost of processing customer complaints in January and in February. Month Allocated Cost January February References Worksheet Difficulty: 2 Medium Exercise 12-11A (Algo) Learning Objective: 12-03 Identify the Allocating to solve a timing most appropriate cost driver. problem LO 12-3