Fringe Benefits:Weight ofAllocatedCostAllocationHomeRateBase13TotalIndirect Materials:Weight ofBaseAllocationAllocatedHomeRate123TotalThe cost components to determine the total cost of each house:Expected CostsHome 1Home 2Home 3TotalDirect laborDirect materialsFringe benefitsIndirect materialsTotal costIIIIIIII Benson Construction Company expects to build three new homes during a specific accounting period. The estimated direct materialsand labor costs are as follows.Expected CostsDirect laborHome 1Home 2Home 3$ 99,000134,000$ 68,000$189,000187,000Direct materials108,000Assume Benson needs to allocate two major overhead costs ($53,400 of employee fringe benefits and $25,740 of indirect materialscosts) among the three jobs.RequiredChoose an appropriate cost driver for each of the overhead costs and determine the total cost of each house. (Round "Allocationrate" to 2 decimal places.)

Name: Fringe Benefits:Weight ofAllocatedCostAllocationHomeRateBase13TotalIn
Uploaded: 2024-03-20T06:32:49.000Z
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Description: Fringe Benefits:Weight ofAllocatedCostAllocationHomeRateBase13TotalIndirect Materials:Weight ofBaseAllocationAllocatedHomeRate123TotalThe cost components to determine the total cost of each house:Expected CostsHome 1Home 2Home 3TotalDirect laborDire

A cost driver is a factor that creates or drives the cost of the activity. It is the root cause of…

Answered: Required Choose an appropriate cost…

Business

Accounting

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.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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