V -MN* 00因今43.01n Chapters 8-10SavedHelpSave & ExitSubmBanc Corp. Trust is considering either a bankwide overhead rate or department overhead rates to allocate $420,000 of indirect costs. Thebankwide rate could be based on either direct labor hours (DLH) or the number of loans processed. The departmental rates would be basedon 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:DepartmentDLHLoans ProcessedDirect CostsConsumer000'0$280,00012,000850Commercial0000000If Banc Corp. Trust uses a bankwide rate based on the number of loans processed, what would be the total costs for the CommercialDepartment?Multiple Choice000'0Graw< Prev13 of 2510:19 PMType here to search(Gpツ4/15/2021近同回F10PrtSc+D-E3DeleteF7F8F11F12Ins反6-&233.Backspac7.65.[CAGH.BNAltCtrlAltHome

Bank wide rate based on number of loans processed = Total indirect costs/Total number of loans…

Answered: e total costs for the Commercial

Business

Accounting

e total costs for the Commercial

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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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

100%

V -
MN
* 00
因
今4
3.
01
n Chapters 8-10
Saved
Help
Save & Exit
Subm
Banc Corp. Trust is considering either a bankwide overhead rate or department overhead rates to allocate $420,000 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
000'0
$280,000
12,000
850
Commercial
0000
000
If Banc Corp. Trust uses a bankwide rate based on the number of loans processed, what would be the total costs for the Commercial
Department?
Multiple Choice
000'0
Graw
< Prev
13 of 25
10:19 PM
Type here to search
(Gpツ
4/15/2021
近
同回
F10
PrtSc
+D
-E3
Delete
F7
F8
F11
F12
Ins
反
6-
&
23
3.
Backspac
7.
6
5.
[C
A
G
H.
B
N
Alt
Ctrl
Alt
Home

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