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Bone Corpus contingene bak de over det overhead 34.000 The bebedour o 500.000 O $12.500 O $230.000 O $130.500
Banc Corp Trust is considering thera barw.de overhead rate or departed departmental rates would be based on direct labor hour
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Answer #1

1) Total direct labor hours= 12000+7000= 19000 hours

Indirect costs per unit= Total indirect cost/Total direct labor hours

= $342000/19000= $18 per DLH

Indirect costs allocated to the Commercial department= Indirect costs per unit*DLH of commercial department

= $18*7000= $126000

So, the answer is option A) $126000

2) Total loans processed= 850+200= 1050 loans

Indirect costs per loan= $420000/1050= $400 per loan

Indirect costs allocated to the Commercial department= Indirect costs per loan*Loans processed of commercial department

= $400*200= $80000

Total costs of Commercial department= Indirect costs+Direct costs

= $80000+280000= $360000

So, the answer is option C) $360000

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