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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
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: Tuition revenue Marketing and administration Preschool $ 1,500 275 Cost allocation Preschool Middle School $ 1,800 325 In the current year, the middle and high schools experienced no change in revenues, but the preschool's tuition revenue increased to $1.9 million. Marketing and administrative costs rose to $1,250,000. 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.) Middle School High School $ 2,200 400 High School $ Total $ 5,500 1,000 Total 0
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