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:
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
Correct Answer:
Verified
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