The Savings Bank of Sarasota Has Three Revenue-Generating Departments: Checking

Multiple Choice

The Savings Bank of Sarasota has three revenue-generating departments: checking accounts, savings accounts, and loans. The bank also has three service areas: administration, personnel, and accounting. The direct costs per month and the interdepartmental service structure are shown below: $$\begin{array}{l}\text { Percentage of Service Used by }\\\begin{array} { | l | c | c | c | c | c | c | c } \hline \text { Dept. } & \text { Costs } & \text { Admin. } & \text { Pers. } & \text { Acctg. } & \text { Check. } & \text { Sav. } & \text { Loc } \\\hline \text { Administration } & \$ 40,000 & - & 10 & 10 & 40 & 20 & 21 \\\hline \text { Personnel } & 23,000 & 10 & - & 10 & 20 & 40 & 21 \\\hline \text { Accounting } & 30,000 & 10 & 10 & - & 20 & 20 & 41 \\\hline \text { Checking } & 41,000 & & & & & & \\\hline \text { Savings } & 25,000 & & & & & & \\\hline \text { Loans } & 16,000 & & & & & & \\\hline\end{array}\end{array}$$ The Savings Bank of Sarasota uses the sequential (step) method and the service departments are allocated in the following order: administration, personnel, and accounting. How much cost would be allocated to the loan area from the personnel department using the sequential/step method? (Round to two decimal places.)

A) $4,600.00
B) $6,000.00
C) $5,111.11
D) $7,666.67