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 Costs Direct labor Direct materials Home 1 Home 2 $74,000 $99,000 92,000 135,000 Home 3 $173,000 196,000 Assume Gibson needs to allocate two major overhead costs ($69,200 of employee fringe benefits and $29,610 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.)