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 on the basis of each school's annual tuition revenue (as a percentage of

image text in transcribed

Chilton Day School allocates marketing and administrative costs to its three schools on the basis of each school's annual tuition revenue (as a percentage of the total). Last year the allocations (000s omitted) were as follows: Middle School $ 1,810 330 Preschool $ 1,510 280 High School $ 2,210 405 Tuition revenue Marketing and administration Total $ 5,530 1,015 In the current year, the middle and high schools experienced no change in revenues, but the preschool's tuition revenue increased to $1.91 million. Marketing and administrative costs rose to $1,260,000. Required: 1. Using revenue as an allocation base, how much current year cost will be allocated to the: (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts. Similar to the given information, omit 000s from your answer.) Middle School High School Preschool $ 344,050 Total 344,050 Cost allocation $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Advanced Financial Accounting

Authors: Richard Lewis, David Pendrill

6th Edition

0273638335, 978-0273638339

More Books

Students also viewed these Accounting questions

Question

From the definition, show that A B = (B A)

Answered: 1 week ago

Question

Why are ratios and trends used in financial analysis?

Answered: 1 week ago