Savings Bank Has Three Revenue-Generating Departments: Chequing Accounts, Savings Accounts $\quad$

Multiple Choice

Savings Bank has three revenue-generating departments: Chequing 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:
$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text { Percentage of Service Used by }$
$\begin{array}{l|c|c|c|c|c|c|c}\hline \text { Dept. } & \text { Costs } & \text { Admin. } & \text { Pers. } & \text { Acctg. } & \text { Cheq. } & \text { Sav. } & \text { Loans } \\\hline \text { Administration } & \$ 40,000 & - & 10 & 10 & 40 & 20 & 20 \\\hline \text { Personnel } & 23,000 & 10 & - & 10 & 20 & 40 & 20 \\\hline \text { Accounting } & 30,000 & 10 & 10 & - & 20 & 20 & 40 \\\hline \text { Chequing } & 41,000 & & & & & & \\\hline \text { Savings } & 25,000 & & & & & & \\\hline \text { Loans } & 16,000 & & & & & &\\\hline \end{array}$

-Refer to the figure.How much cost would be allocated to the Savings Account area from Administration using the direct method?

A) $5,000
B) $10,000
C) $20,000
D) $40,000