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

Assume Fanya needs to allocate two major overhead costs ($80,000 of employee fringe benefits and $40,000 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 your figures to 3 decimal points.

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Expected Costs Home 1 Direct labor Direct materlals30,000 Home 2 Home 3 $40,000 $60,000 $100,000 50,000 80,000