Banc Corp. Trust is considering either a bankwide overhead rate or department overhead rates to...
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Banc Corp. Trust is considering either a bankwide overhead rate or department overhead rates to allocate $390,000 of indirect costs. The bankwide rate could be based on either direct labor hours (DLH) or the number of loans processed. The departmental rates would be based on direct labor hours for Consumer Loans and a dual rate based on direct labor hours and the number of loans processed for Commercial Loans. The following information was gathered for the upcoming period: Department Consumer Commercial DLH 15,000 6,000 Loans Processed 600 400 Direct Costs $250,000 $150,000 If Banc Corp. Trust uses a bankwide rate based on the number of loans processed, what would be the total costs for the Consumer Department? Multiple Choice $250,000. $228,000. $540.000
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