The Muskego National Bank is considering either a bankwideoverhead rate or department overhead rates to allocate $250000 ofindirect costs. The bankwide rate could be based on either directlabor hours (DLH) or the number of loans processed. Thedepartmental rates would be based on direct labor hours forConsumer Loans and a dual rate based on direct labor hours and thenumber of loans processed for Commercial Loans. The followinginformation was gathered for the upcoming period:Department DLH Loans processed Direct costConsumer 9000 400 $200000Commercial 6000 100 $150000If Muskego uses a bankwide rate based on direct labor hours whatwould be the indirect costs allocated to the Consumer Department?(Do not round your intermediate calculations.)
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