Question: Waco Construction framed three structures last month: The simple house, the big house and the complex house. Direct costs of the three houses were labor
Waco Construction framed three structures last month: The simple house, the big house and the complex house. Direct costs of the three houses were labor and lumber with the following total direct costs along with square footages: Waco Construction Monthly Construction data by Project Simple Complex House Big House House Total Square Feet 1.700 Sq. Ft. 4,500 Sq. Ft. 3,800 Sq. Ft. 10,000 Sq. Ft. Labor cost $ 8,650 $ 31,550 $ 41,800 $ 82,000 Lumber Cost $ 16,000 $ 42,000 $ 41,000 $ 99,000 Total Direct $ 24,650 $ 73,550 $ 82,800 $ 181,000 Total Indirect costs for the month are $500,000. 1. Assume the indirect costs of $500,000 are allocated to the three projects on the basis of square feet. What is the total cost of each project? 2. Assume the indirect costs of $500,000 are allocated to the three projects on the basis of labor cost. What is the total cost of each project
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