Banc Corporation Trust is considering either a bank-wide overhead rate or department overhead rates to allocate $396,000 of indirect costs. The bank-wide 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 16,000 9,000 Loans Processed Direct Costs 700 300 $ 280,000 $ 180,000 Commercial If Banc Corporation Trust uses a bank-wide rate based on the number of loans processed, what would be the total costs for the Consumer Department? Multiple Choice O O $254,000 $280,000 $576,000 $557,200 < Prev 11 of 23 Next > G
Banc Corporation Trust is considering either a bank-wide overhead rate or department overhead rates to allocate $396,000 of indirect costs. The bank-wide 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 16,000 9,000 Loans Processed Direct Costs 700 300 $ 280,000 $ 180,000 Commercial If Banc Corporation Trust uses a bank-wide rate based on the number of loans processed, what would be the total costs for the Consumer Department? Multiple Choice O O $254,000 $280,000 $576,000 $557,200 < Prev 11 of 23 Next > G
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 9EB: The cost data for BC Billing Solutions for the year 2020 is as follows: Using the high-low method,...
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