Exercise 12-8A (Algo) Allocating costs among products LO 12-3 Gibson 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 Home 1 Home 2 Home 3 Direct labor $ 62,000 $106,000 $171,000 Direct materials 95,000 145,000 183,000 es Assume Gibson needs to allocate two major overhead costs ($67,800 of employee fringe benefits and $12,690 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.) Fringo Benefits: Home Allocation Rate * Weight of Base - Allocated Cost 0 1 2 X 0 3 X 0 Total $ 0 Fringe Benefits: Home Allocation Rate x Weight of Base = Allocated Cost 0 11 $ 1 0 II 2 0 0 11 3 X $ 0 Total Indirect Materials: Home Il $ 1 11 2 Allocation Rate x Weight of Base = Allocated Cost $ 0 0 0 $ 0 X = 3 Total Home 3 Total $ 0 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