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Banc Corp Trust is considering ether a bankwide overhead tate or department overhead rates to allocate $486,000 of indirect costs. The bankwide rate could be
Banc Corp Trust is considering ether a bankwide overhead tate or department overhead rates to allocate $486,000 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 latior 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. Departnent Consumer Commercial DLH 17,000 10,000 Loans Processed 650 Direct Costs $280,000 $160,000 Banc Corp. Trust uses a bankwide rate based on direct labor hours, what would be the indirect costs allocated to the Commercial Department? $180,000 $173,700 $160,000 $186,300
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