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 $1,510 $1,810 $2,210 $5,530

Marketing and administration 280 330 405 $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 should the costs be allocated for the current year?

Pre-school Middle School High School

Admin. Costs: