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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 Coats Direct labor Direct materials Home 1 $71,000 94,000 Home 2 $ 94,000 133,000 Home $179,000 191,000 Assume Zachary needs to allocate two major overhead costs ($68,800 of employee fringe benefits and $37,620 of indirect materials costs) among the three jobs. Fringe Benefits: Home Allocation Rate x Weight of Base = Allocated Cost $ 0 1 11 2 11 0 3 11 Total $ $ Indirect Materials: Home Allocation Rate x Weight of Base Il 1 Allocated Cost $ 0 2 0 3 0 Total 0 Home 3 Total $ 0 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 0 0 0 0 0 0 $ 0
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