Exercise 12-8A (Algo) Allocating costs among products LO 12-3 Jordan Construction Company expects to build three new homes during a specific accounting period. The estimated direct materials and labor costs are as follows. Home 2 Home 3 Expected Costs Direct labor Direct materials Home 11 $ 66,000 $107,000 102,000 145,000 $185,000 196,000 Assume Jordan needs to allocate two major overhead costs ($53,700 of employee fringe benefits and $26,580 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: Allocated Home Allocation Rate Weight of Base Cost 1 $ X 2 X 3 X $ Total B m - OOOC 0 0 0 0 Indirect Materials: Home 1 2 Allocation Rate X Weight of Base X X 3 X = Total 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 = $ Allocated Cost $ Home 3 0 0 0 0 0 $ $ Total 0 0 0 0 0