Allocating costs among products

Reference no: EM131128539

Bryson Construction Company expects to build three new homes during a specific accounting period. The estimated direct materials and labor costs are as follows.

Expected Costs	Home 1	Home 2	Home 3
Direct labor	$ 60,000	$ 89,000	$196,000
Direct materials	182,000	247,000	380,000

Assume Bryson needs to allocate two major overhead costs ($41,400 of employee fringe benefits and $40,450 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 home.

Reference no: EM131128539

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