Banc Corp. Trust is considering either a bankwide overhead rate or department overhead rates to allocate $368,000 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 15,000 850 $ 260,000 Commercial 8,000 150 $ 140,000 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 $128,000. $125,600. $130,400. $140,000.
Banc Corp. Trust is considering either a bankwide overhead rate or department overhead rates to allocate $368,000 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 15,000 850 $ 260,000 Commercial 8,000 150 $ 140,000 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 $128,000. $125,600. $130,400. $140,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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TB MC Qu. 9-77 (Algo) Banc Corp. Trust is considering either a bankwide...
Banc Corp. Trust is considering either a bankwide
| Department | DLH | Loans |
Direct Costs | ||||
| Consumer | 15,000 | 850 | $ | 260,000 | |||
| Commercial | 8,000 | 150 | $ | 140,000 | |||
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
-
$128,000.
-
$125,600.
-
$130,400.
-
$140,000.
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