Banc Corp. Trust is considering either a bankwide overhead rate or department overhead rates to allocate $357,000 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 $340,000 $240,000 Consumer 700 Commercial 000'9 If Banc Corp. Trust uses a bankwide rate based on direct labor hours, what would be the indirect costs allocated to the Commercial Department? Multiple Choice $102,000

Banc Corp. Trust is considering either a bankwide overhead rate or department overhead rates to allocate $357,000 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 $340,000 $240,000 Consumer 700 Commercial 000'9 If Banc Corp. Trust uses a bankwide rate based on direct labor hours, what would be the indirect costs allocated to the Commercial Department? Multiple Choice $102,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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