The loan department of a bank is responsible for several functions, including processing home loan applications, managing customer inquiries, and…

The loan department of a bank is responsible for several functions, including processing home loan applications, managing customer inquiries, and overseeing loan approvals. After careful analysis, it has been estimated that 30% of the department's total overhead costs such as legal advice, telephone expenses, staff salaries, etc. are directly related to the processing of home loan applications, though only 480 home loan applications are processed each month. The following information is given concerning the processing of a loan application: Particulars (₹) Home Loan processors monthly salary: (16 employees @94,500 each) 15,12,000 Loan department overhead costs (monthly) Chief loan officer's salary 4,72,500 Telephone expenses 47,250 Depreciation Building 1,76,400 Legal advice 1,51,200 Advertising 2,52,000 Miscellaneous 40,950 Total overhead costs 11,40,300 COMPUTE processing cost per home loan application.