Question
18-1. Chilton Day School allocates marketing and administrative costs to its three schools based on total annual tuition revenue for the schools. Last year the
18-1. Chilton Day School allocates marketing and administrative costs to its three schools based on total annual tuition revenue for the schools. Last year the allocations (000s omitted) were as follows:
Preschool | Middle School | High School | Total | |||||||||
Tuition revenue | $ | 1,640 | $ | 1,940 | $ | 2,340 | $ | 5,920 | ||||
Marketing and administration | 345 | 395 | 470 | 1,210 |
In the current year, the middle and high schools experienced no change in revenues, but the preschools tuition revenue increased to $2.04 million. Marketing and administrative costs rose to $1,390,000.
Required:
1. Using revenue as an allocation base, how should the costs be allocated for the current year? (Do not round intermediate calculations. Enter your dollar answers in thousands rounded to 2 decimal places.)
Preschool Middle School High School Total Cost allocation $ 0.00
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