Exercise 12-8A (Algo) Allocating costs among products LO 12-3 Campbell 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 $ 65,000 $100,000 $175,000 Direct materials 107,000 137,000 182,000 Assume Campbell needs to allocate two major overhead costs ($52,200 of employee fringe benefits and $34,080 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 Bate Allocated Cost 1 2 3 X Total Allocation Rate Weight of Base Allocated Cost Indirect Materials Home 1 2 3 To x rate to aces Fringe Benefits: Home Allocation Rate * Weight of Base = Allocated Cost 11 1 = 2 X = X 3 Total Allocation Rate x Weight of Base = Allocated Cost Indirect Materials: Home 1 2 11 X 11 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