Question: I am a homebuilder. I have built three homes. Below is a summary of the direct costs for the houses. Total overhead costs for supervisory

I am a homebuilder. I have built three homes. Below is a summary of the direct costs for the houses.

Total overhead costs for supervisory salaries and indirect materials amount to $84,000.
Since there are 3 houses, I will allocate 1/3 of $84,000 to each house. Do you like my allocationmethod?

$140,000 $70,000 Direct Materials Direct Labor Overhead $90,000 210,000 130,000 60,000

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