Exercise 12-8A (Algo) Allocating costs among products LO 12-3 Baird Construction Company expects to build three new homes during a specific accounting perlod. The estimated direct materials and labor costs are as follows. Expected Costs Direct labor Direct materials Hose 1 $ 76,000 96,000 Home 2 Home 3 $ 92,see 3173,00 148,00 196,000 Assume Baird needs to allocate two major overhead costs ($68,200 of employee fringe benefits and $35,200 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 rete" to 2 decimal places.) Fringe Benefits Home Allocation Rate * Weight of Base Allocated Cost 1 2 3 Total Indirect Materials Home Allocation Rate = Allocated Cost * Weight of Base X 2 a ## Total Prev 1 of 2 !!! Next > search O @ @ 79% L Fringe Benefits Home Allocation Rate * Weight of Base - Allocated Cost 1 X* 2 x 1 3 x Total Indirect Materials: Home Allocation Rate = Allocated Cost x Weight of Base x 1 2 X ## 3 x Total The cost components to determine the total cost of each house: Expected Costs Home 1 Home 2 Direct labor Home 3 Total Direct materials Fringe benefits Indirect materials Total cost