Banc Corp. Trust is considering a bank-wide overhead rate or departmental overhead rates to allocate $360,000 of indirect costs. The bank-wide rate could be based on direct labor hours (DLH) or the number of loans processed. 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 collected for the next period:

Department	DEBT		Processed Loans		direct costs
Consumer	17,000		500		ps	290.000
Commercial	6,000		400		ps	190.000

Required:

If Banc Corp. Trust uses a bank-wide rate based on the number of loans processed, what would be the total costs to the Consumer Department?

Answer rating: 100% (QA)

To calculate the total costs for the Consumer Department using a bankwide rate based on the number o... View the full answer