ACC203

Direct Materials Direct Labor Overhead* House 1 $140,000 210,000 House 2 $ 70,000 130,000 House 3 $90,000 60,000 'Total indirect costs such as supervisory salaries and indirect materials amount to $84,000. My house is house number one. I believe distributing the overhead costs equally among the three houses is a fair way to allocate them. My specific recommendation is: $84,000 overhead / 3 houses $28,000 per house. Your house is house number three. Do you agree with this assignment of cost? the amount of overhead costs to be assigned to each of the three houses. ining why or why not. Include your own recommendation to allocate the $84,000 of overhead costs. Based on your suggestion indicate