Banc Corporation Trust is considering either a bank-wide overhead rate or department overhead rates to allocate $398,000 of indirect costs. The bank-wide rate could be based on either direct labor-hours (DLH) orthe 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 CommercialLoans. The following information was gathered for the upcoming period:DepartmentConsumerCommercialMultiple ChoiceOHow much of the $398,000 indirect costs should be allocated to the Consumer Department, if Banc Corporation Trust uses a bank-wide rate based on the number of loans processed?Note: Round the bank-wide rate to the nearest dollar.OO$298,000$298.500$290,000DLH18,0006,000$108,000LoansProcessed750250Direct Costs$ 290,000$ 170,000

The following relevant information has been provided,Indirect cost = $398,000Allocation basis =…

Answered: Banc Corporation Trust is considering…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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The director of public works needs to distribute the indirect cost allocation of $1.2 million to the three branches around the city. She will use the information from last year to determine the rates for this year. a. Determine this year’s indirect cost rates for each branch. b. Use the rates from last year and records for this year to distribute the allocation for this year. How much of the $1.2 million is actually distributed?
Mannerman Products, Incorporated, operates an electric power plant which provides all electrical power for the company's Machining and Fabrication departments. Information on kilowatt-hours (kwh) of power usage in these departments for May follow: Budgeted kwh Actual kwh The costs of the electric power plant are all fixed. Budgeted fixed costs for May totaled $60,000 and are determined by peak-period requirements. Actual fixed costs for the month totaled $65,000. The Machining Department requires 60% of the peak-period capacity and the Fabrication Department requires 40%. Multiple Choice For performance evaluation purposes, how much of the electric power plant's fixed costs should be charged to the Fabrication department at the end of the month for purposes of evaluating performance? $18,000 $24,000 Machining Fabrication 20,000 10,000 25,000 15,000 $30,000 Total 30,000 40,000 $26,000
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Korvanis Corporation operates a Medical Services Department for its employees. Charges to the company's operating departments for the variable costs of the Medical Services Department are based on the actual number of employees in each department. Charges for the fixed costs of the Medical Services Department are based on the long-run average number of employees in each operating department. Variable Medical Services Department costs are budgeted at $57 per employee. Fixed Medical Services Department costs are budgeted at $639,300 per year. Actual Medical Services Department costs for the most recent year were $105,800 for variable costs and $645,000 for fixed costs. Data concerning employees in the three operating departments follow: Budgeted number of employees Cutting 604 Milling 293 Assembly 918 Actual number of employees for the most recent year 504 393 Long-run average number of employees 1,050 700 818 1,750 Required: 1. Determine the Medical Services Department charges for the…
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Hanung Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of $370,000 are allocated on the basis of budgeted maintenance-hours. Personnel Department costs of $120,000 are allocated based on the number of employees. The costs of operating departments A and B are $196,000 and $294,000, respectively. Data on budgeted maintenance-hours and number of employees are as follows: Production Departments Budgeted costs $370,000 Budgeted maintenance- hours Number of employees Maintenance Personnel Department Department 200 Support Departments 90 870 A $120,000 $196,000 $294,000 15 B 1,260 670 280 680 Using the direct method, what amount of Personnel Department costs will be allocated to Department B? (Do not round any intermediary calculations.)

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