Multiple Choice $277,200 $252,000 $118,800 $144,000

Banc Corporation Trust is considering either a bank-wide overhead rate or department overhead rates to allocate $396,000 of indirect costs. The bank-wide 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 14,000 8,000 Loans Processed 700 300 Direct Costs $ 280,000 $ 180,000 How much of the $396,000 indirect costs should be allocated to the Commercial Department, if Banc Corporation Trust uses a bank-wide rate based on the number of loans processed? Multiple Choice O O O O $277,200 $252,000 $118,800 $144,000