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.Savings Bank 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 (rounded to two decimal places) ?

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