Exercise 12-8A (Algo) Allocating costs among products LO 12-3 Zachary Construction Company expects to build three new homes during a specific accounting period. The estimated direct materials and labor costs are as follows. Expected Conta Home 1 Home 2 Hone Direct labor $ 68,000 $100,000 $182,000 Direct materials 104,000 140,000 193,000 Assume Zachary needs to allocate two major overhead costs ($53,700 of employee fringe benefits and $21,850 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 1 Allocation Rotex Walght of Base = Allocatod Cost x x 2 3 x H Total Indirect Materials: Home Allocation Rate Allocated Cost x Weight of Base X 1 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