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Banc Corp. Trust is considering either a bankwide overhead rate or department overhead rates to allocate $450 000 of indirect costs. The bank wide rate

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Banc Corp. Trust is considering either a bankwide overhead rate or department overhead rates to allocate $450 000 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 Loans Processed Department Consumer Commercial DH 16,000 7,000 Direct Costs $350,000 $250,000 If Banc Corp. Trust uses a bank wide rate based on direct labor hours, what would be the indirect costs allocated to the Consumer Department

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