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	DLH	Loans Processed	Direct Costs
Consumer	14,000	700	$ 280,000
Commercial	8,000	300	$ 180,000

If Banc Corporation Trust uses a bank-wide rate based on direct labor-hours, what would be the indirect costs allocated to the Consumer Department?

Multiple Choice

$49,000

$252,000

$198,000

$396,000