Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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 $ 1,670 $ 1,970 $ 2,370 $ 6,010
Marketing and administration 360 410 485 1,255

In the current year, the middle and high schools experienced no change in revenues, but the preschools tuition revenue increased to $2.07 million. Marketing and administrative costs rose to $1,420,000.

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.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Holt McDougal Larson Geometry

Authors: Ron Larson, Laurie Boswell, Timothy D. Kanold, Lee Stiff

1st Edition

0547315171, 978-0547315171

Students also viewed these Accounting questions