Business, 05.05.2020 22:40 lame3245

Anc Corp. Trust is considering either a bankwide overhead rate or department overhead rates to allocate $398,000 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 18,000 800 $ 370,000 Commercial 9,000 200 $ 270,000 How much of the $398,000 indirect costs should be allocated to the Commercial Department, if Banc Corp. Trust uses a bankwide rate based on the number of loans processed

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Anc Corp. Trust is considering either a bankwide overhead rate or department overhead rates to alloc...