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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: Middle High School Total Preschool School Tuition revenue $1,640 $1,940 $2,340 $5,920 1,210 Marketing and administration 345 470 395 In the current year, the middle and high schools experienced no change in revenues, but the preschool's tuition revenue increased to $2.04 million. Marketing and administrative costs rose to $1,390,00O. 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.) Total Preschool Middle School High School Cost allocation
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