Banc Corp. 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	DLH		Loans Processed		Direct Costs
Consumer	17,000		700		$	360,000
Commercial	8,000		300		$	260,000

How much of the $396,000 indirect costs should be allocated to the Consumer Department, if Banc Corp. Trust uses a bank-wide rate based on the number of loans processed?

Multiple Choice

• $246,000.

• $360,000.

• $277,200.

• $36,000.