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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
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 Costs Direct labor Direct materials Home 1 Home 2 Home 3 $61,000 $102,000 $185,806e 93,eee 134,eee 190,88e Assume Zachary needs to allocate two major overhead costs ($34,800 of employee fringe benefits and $12,510 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: House Allocation Rate x Weight of BaseAllocated Cost 2 Total Indirect Materials: House Allocation Rate x Weight of BaseAllocated Cost 2 3 Total The cost components to determine the total cost of each house: Home 1 Home 2 Home 3 Expected Costs Direct labor Direct materials Fringe benefits Indirect Materials Total Total cost
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