Benson Construction Company expects to build three new homesduring a specific accounting period. The estimated direct materialsand labor costs are as follows:
| Expected Costs | Home 1 | Home 2 | Home 3 |
| Direct labor | $ | 72,000 | | $ | 109,000 | | $ | 179,000 | |
| Direct materials | | 104,000 | | | 134,000 | | | 197,000 | |
|
Assume Benson needs to allocate two major overhead costs($36,000 of employee fringe benefits and $13,050 of indirectmaterials costs) among the three jobs.
Required
Choose an appropriate cost driver for each of the overhead costsand determine the total cost of each house. (Round"Allocation rate" to 2 decimal places.)
