Exercise 12-8A (Algo) Allocating costs among products LO 12-3 Rooney 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 $ 61,600 182.ee Home 2 $ 93,000 144,000 Home 3 $183,000 194, eee Assume Rooney needs to allocate two major overhead costs ($50,550 of employee fringe benefits and $17.600 of indirect materials costs) among the three jobs. CUSSIIVITY MIC LICE JUUS 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.) Allocation Rate * Weight of Base = Allocated Cost Fringe Benefits Home 1 2 3 X Total Indirect Materials: Home 1 Allocation Rate * Weight of Base Allocated Cost 2 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 of Next Exercise 12-11A (Algo) Allocating to solve a tlming problem LO 12-3 Vernon Air is a large airline company that pays a customer relations representative $5,325 per month. The representative, who processed 1.000 customer complaints in January and 1.340 complaints in February, is expected to process 21,300 customer complaints during the year. Required a. Determine the total cost of processing customer complaints in January and in February Allocated Cost Month January February Problem 12-18A (Algo) Allocation to accomplish smoothing LO 12-1, 12-2, 12-3 Franklin Corporation estimated its overhead costs would be $23.700 per month except for January when it pays the $171,030 annual insurance premium on the manufacturing facility. Accordingly, the January overhead costs were expected to be $194730 ($171,030 + $23,700). The company expected to use 7.700 direct labor hours per month except during July August, and September when the company expected 9,200 hours of direct labor each month to build inventories for high demand that normally occurs during the Christmas season. The company's actual direct labor hours were the same as the estimated hours. The company made 3,850 units of product in each month except July August, and September, in which it produced 4,600 units each month. Direct labor costs were $24.00 per unit and direct materials costs were $11.50 per unit. Required o. Calculate a predetermined overhead rate based on direct labor hours. b. Determine the total allocated overhead cost for January March, and August. c. Determine the cost per unit of product for January, March, and August d. Determine the selling price for the product, assuming that the company desires to earn a gross margin of $21.90 per unit. cet Complete this question by entering your answers in the tabs below. Reg A Reg B to D Calculate a predetermined overhead rate based on direct labor hours. (Round your answer to 2 decimal places.) Predetermined overhead rate per labor hour RegBD >
