Russell Department Stores, Inc. has three departments: women's, men's, and children's. The following are the Indirect costs related to Its operations: Required Organize the costs in the following three pools: Indirect materials, Indirect labor, and Indirect utilities, assuming that each department is a cost object. Vacation pay Sewer bill Staples Cost Items Natural gas bill Pens Ink cartridges Payroll taxes Paper rolls for cash registers Medical insurance Salaries of secretaries Water bill Willey Company makes three products in its factory: plastic cups, plastic tablecloths, and plastic bottles. The expected overhead costs for the next fiscal year Include the following. Factory manager's salary Factory utility cost Factory supplies Total overhead costs $210,000 70,000 20,000 $300,000 Willey uses machine hours as the cost driver to allocate overhead costs. Budgeted machine hours for the products are as follows. Cups Tablecloths Bottles Total machine hours 300 Hours 750 958 2,000 Required a. Allocate the budgeted overhead costs to the products. Product Allocation Rate x Weight of Base = Allocated Cost Cups Tablecloths x x Bottles Total x Fanya 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 Hone 1 $40,000 30,000 Home 2 Home 3 $60,000 50,000 $100,000 80,000 Assume Fanya needs to allocate two major overhead costs ($80,000 of employee fringe benefits and $40,000 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 = = 2 3 Total Indirect Materials: Home Allocation Rate x Weight of Base = Allocated Cost 1 x = 2 = 3 = Total The cost components to determine the total cost of each house: Expected Costs Direct labor Direct materials Fringe benefits Indirect Materials Total cost Home 1 Home 2 Home 3 Total