The Oregon Bank is considering either a bank-wide overhead rate or departmental overhead rates to allocate $600,000 of indirect costs. The bank-wide rate could be based on either direct labor hours or the number of loans processed. The departmental rates would be based on direct labor time for Consumer Loans and a dual rate based on direct labor time and the number of loans processed for Commercial Loans. The following information was gathered for the upcoming period: Direct Department Labor Hours Loans Processed Direct Costs Consumer 12,000 800 $400,000 Commercial 9,000 200 $300,000 If the Oregon Bank uses a bank-wide rate (rounded to the nearest hundredth) based on direct labor time, what would be the amount of indirect costs allocated to the Consumer Department?

$257,143

$342,857

$120,000

$480,000