Exercise 12-8A (Algo) Allocating costs among products LO 12-3 Perez 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 $ 67,000 97,000 Home 21 $108,000 Home 31 $179,000 139,000 199,000 Assume Perez needs to allocate two major overhead costs ($53,100 of employee fringe benefits and $17,400 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 x Weight of Base Allocated Cost 1 $ 0 2 0 3 0 Total $ 0 Indirect Materials: Home Allocation Rate x Weight of Base Allocated Cost 1 $ 2 0 3 0 Total 0 The cost components to determine the total cost of each house: Moma 1 Home? Home 3 Total