Marvel Bank & Trust operates in a very competitive marketplace, using a traditional labor-hour-based system to determine the cost of processing its mortgage loans. Recently, the firm explored a switch to activity-based costing to determine the wisdom of its previous ways. The following information is available:

Activity	Cost			Drive	Driver Units
Application processing		805,000		Applications		3,500
Loan underwriting		832,500		Underwriting hours		18,500
Loan closure		850,000		Legal hours		8,500
Total		2,487,500

Two loan applications, among many others, were originated and closed during the year. No. 7439 consumed 6.0 hours in loan underwriting and 4.0 hours in loan closure, for a total of 10 hours. No. 7809 also required 10 hours of time, subdivided as follows: 4.5 hours in loan underwriting and 5.5 hours in loan closure. Required: A. Use an activity-based-costing system and determine the cost of processing, underwriting, and closing the two loan applications. (Round your intermediate calculations to the nearest whole dollar.) B. Determine the cost of processing the two loans if Marvel uses the traditional labor-hour-based system. Conversations with management found that, on average, each application took fourteen labor hours of processing time, excluding underwriting and closure. (Round your intermediate calculations to the nearest whole number.)