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Mendoza Home Builders, Inc., specializes in the construction of large family homes. The company applies overhead to each home it builds on the basis of

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Mendoza Home Builders, Inc., specializes in the construction of large family homes. The company applies overhead to each home it builds on the basis of the direct labor cost incurred on the job site. The budgeted total direct labor costs for the coming year amount to $5,000,000. A list of the budgeted overhead costs is presented below. Budgeted Overhead Costs Indirect labor-hourly workers Indirect labor-supervisor salaries Equipment repairs and maintenance Indirect materials Licenses, permits, and taxes Waste disposal Equipment depreciation Materials and equipment storage Small tools lost or broken Other miscellaneous overhead $1,000,000 400,000 350,000 250,000 100,000 75,000 0,000 20,000 12,000 43,000

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