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. pected Costa $ 72,000 $101,000 $157,000 95,00 194,000 Direct labor Direct materials 142.000 Assume Baird needs to allocate two major overhead costs ($54,000 of employee fringe benefits and $12.930 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 rote to 2 decimal places.) Fringe Benefits: Home Allocation Rate x Weight of Base = Allocated Cost 1 11 2. 3 11 Total Indirect Materials: Home Allocation Rate x Weight of Base = Allocated Cost 1 Il 2 1111 X 3 Total Home 3 Total 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