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The Mega-Bank is considering either a bankwide overhead rate or department overhead rates to allocate $135,000 of indirect costs. The bankwide rate could be based
The Mega-Bank is considering either a bankwide overhead rate or department overhead rates to allocate $135,000 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 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 9,000 400 $ 80,000 Commercial 6,000 100 $ 81,000 If Mega-Bank uses a bankwide rate based on direct labor hours, what would be the indirect costs allocated to the Commercial Department? Round answer to the nearest whole dollar. Do not enter dollar signs or commas. The Mega-Bank is considering either a bankwide overhead rate or department overhead rates to allocate $330,000 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 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 7,500 300 $ 184,000 Commercial 5,000 75 $ 198,000 Management estimates that it costs $550 to analyze and close a commercial loan. This amount has been included in the $330,000 of indirect costs. How much of the $330,000 indirect costs should be allocated to the Commercial Department, if the remaining indirect costs are assigned based on the number of loans processed? Your answer should include the costs to analyze and close a commercial loan PLUS the the commercial departments part of the remaining cost. Round answer to the nearest whole dollar. Do not enter dollar signs or commas
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