Fringe benefits allocation rate = | 69,800/(68000+97000+184000) | |||||||
0.2 | ||||||||
indirect materials allocated rate= | 30450/(103000+135000+197000) | |||||||
0.07 | ||||||||
1) | Fringe Benefits | |||||||
House | Allocation | * | Weight of | = | Allocated | |||
Base | base | cost | ||||||
1 | 0.2 | * | 68,000 | = | 13600 | |||
2 | 0.2 | * | 97,000 | = | 19400 | |||
3 | 0.2 | * | 184,000 | = | 36800 | |||
total | 69800 | |||||||
2) | Indirect materials | |||||||
House | Allocation | * | Weight of | = | Allocated | |||
Base | base | cost | ||||||
1 | 0.07 | * | 103,000 | = | 7210 | |||
2 | 0.07 | * | 135,000 | = | 9450 | |||
3 | 0.07 | * | 197,000 | = | 13790 | |||
total | 30450 | |||||||
3) | the cost component to determine the total cost of each house | |||||||
Expected costs | Home 1 | Home 2 | Home 3 | total | ||||
Direct labor | 68,000 | 97,000 | 184,000 | 349,000 | ||||
Direct Materials | 103,000 | 135,000 | 197,000 | 435,000 | ||||
Fringe Benefits | 13600 | 19400 | 36800 | 69800 | ||||
Indirect materials | 7210 | 9450 | 13790 | 30450 | ||||
total cost | 191,810 | 260,850 | 431,590 | 884,250 | ||||
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