Consumer 14,000 Commercial 7,000 Multiple Choice How much of the $410,000 indirect costs should be allocated to the Commercial Department, if Banc Corp. Trust uses a bankwide rate based on the number of loans processed? O $410,000. $165,000. 650 350 $143,500. $250,000 $130,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Banc Corp. Trust is considering either a bankwide overhead rate or department overhead rates to allocate $410,000 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
Consumer
DLH
14,000
Commercial 7,000
Multiple Choice
How much of the $410,000 indirect costs should be allocated to the Commercial Department, if Banc Corp. Trust uses a bankwide rate based on the number of loans processed?
O
$410,000.
$165,000.
$143,500.
Loans Processed
650
350
$280,000.
Direct Costs
$250,000
$130,000
Transcribed Image Text:Banc Corp. Trust is considering either a bankwide overhead rate or department overhead rates to allocate $410,000 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 Consumer DLH 14,000 Commercial 7,000 Multiple Choice How much of the $410,000 indirect costs should be allocated to the Commercial Department, if Banc Corp. Trust uses a bankwide rate based on the number of loans processed? O $410,000. $165,000. $143,500. Loans Processed 650 350 $280,000. Direct Costs $250,000 $130,000
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