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: The 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? (Round to two decimal places.)

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