Solution-How much indirect costs allocated to the consumer

How much indirect costs allocated to the consumer department

Reference no: EM132853241

Question - Banc Corp. Trust is considering either a bankwide overhead rate or department overhead rates to allocate $416,000 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 15,000 800 $260,000

Commercial 8,000 200 $140,000

How much of the $416,000 indirect costs should be allocated to the Consumer Department, if Banc Corp. Trust uses a bankwide rate based on the number of loans processed?

Reference no: EM132853241

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How much indirect costs allocated to the consumer department

Reference no: EM132853241

Reference no: EM132853241

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