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

Assume Longman needs to allocate two major overhead costs ($60,000 of employee fringe benefits and $20,000 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 decimalpoints.

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Expected Costs Home1 Home2 Home 3 Direct labor Direct materials 45,000 65,000 90,000 $30,000 45,000 $85,000