Astoria Savings & Loans of New York Has Three Revenue-Generating

Astoria Savings & Loans of New York has three revenue-generating departments: Consumer accounts, Commercial 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: $$\begin{array}{l}\text { Percentage of Service Used by }\\\begin{array} { | l | c | c | c | c | c | c | c | } \hline \text { Dept. } & \text { Costs } & \text { Admin. } & \text { Pers. } & \text { Acctg. } & \text { Consumer } & \text { Comm'l } & \text { Loans } \\\hline \text { Administration } & \$ 40,000 & - & 10 & 10 & 40 & 20 & 20 \\\hline \text { Personnel } & 23,000 & 10 & - & 10 & 20 & 40 & 20 \\\hline \text { Accounting } & 30,000 & 10 & 10 & - & 20 & 20 & 40 \\\hline \text { Consumer } & 41,000 & & & & & & \\\hline \text { Commercial } & 25,000 & & & & & & \\\hline \text { Loans } & 16,000 & & & & & & \\\hline\end{array}\end{array}$$ How much cost would be allocated to the Commercial account area from administration using the direct method?

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