The loan department of a Bank performs several functions in addition to home loan application processing task. It is estimated that 25% of the total overhead cost of loan department are applicable to processing of home-loan application. The bank has processed 125 loan applications in the month of March'21. Determine the cost of home-loan application department. The following information pertains to processing of loan application Particulars Rs. Loan Processor's monthly salary [ 4 employees @ Rs 20,000 each) 80,000 Loan Department's overhead cost [monthly): Chief Loan Officer's Salary 30,000 Telephone expenses 1,000 Depreciation on building 5,000 Advertising Cost 3,000 Miscellaneous Cost 1,000 Total Overhead Cost 40,000

The loan department of a Bank performs several functions in addition to home loan application processing task. It is estimated that 25% of the total overhead cost of loan department are applicable to processing of home-loan application. The bank has processed 125 loan applications in the month of March'21. Determine the cost of home-loan application department. The following information pertains to processing of loan application Particulars Rs. Loan Processor's monthly salary [ 4 employees @ Rs 20,000 each) 80,000 Loan Department's overhead cost [monthly): Chief Loan Officer's Salary 30,000 Telephone expenses 1,000 Depreciation on building 5,000 Advertising Cost 3,000 Miscellaneous Cost 1,000 Total Overhead Cost 40,000

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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