Savings Bank of Lawrence Has Three Revenue-Generating Departments: Checking Accounts

Multiple Choice

Savings Bank of Lawrence 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: 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