nd labor costs are as follows. Expected Costs Direct labor Direct materials Fringe Benefits: Home 1 2 Allocation Rate Home 1 $ 71,000 92,000 $ $ assume Fanning needs to allocate two major overhead costs ($34,600 of employee fringe benefits and $25,740 of indir- osts) among the three jobs. Required Choose an appropriate cost driver for each of the overhead costs and determine the total cost of each house. Note: Round "Allocation rate" to 2 decimal places. 0.10 0.10 x X X three new homes during a specific Home 2 $ 99,000 141,000 Weight of Base $ Home 3 $ 176,000 196,000 71,000 99,000 = = II Allocated Cost $ 7,100 9,900

nd labor costs are as follows. Expected Costs Direct labor Direct materials Fringe Benefits: Home 1 2 Allocation Rate Home 1 $ 71,000 92,000 $ $ assume Fanning needs to allocate two major overhead costs ($34,600 of employee fringe benefits and $25,740 of indir- osts) among the three jobs. Required Choose an appropriate cost driver for each of the overhead costs and determine the total cost of each house. Note: Round "Allocation rate" to 2 decimal places. 0.10 0.10 x X X three new homes during a specific Home 2 $ 99,000 141,000 Weight of Base $ Home 3 $ 176,000 196,000 71,000 99,000 = = II Allocated Cost $ 7,100 9,900

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 7PB: Please use the information from this problem for these calculations. After grouping cost pools and...

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