Question
Exercises 18-30 (Algo) Allocation of Marketing and Administrative Costs; Profit Centers [LO 18-3] Chilton Day School allocates marketing and administrative costs to its three schools
Exercises 18-30 (Algo) Allocation of Marketing and Administrative Costs; Profit Centers [LO 18-3] Chilton Day School allocates marketing and administrative costs to its three schools on the basis of each schools annual tuition revenue (as a percentage of the total). Last year the allocations (000s omitted) were as follows: Preschool Middle School High School Total Tuition revenue $ 1,520 $ 1,820 $ 2,220 $ 5,560 Marketing and administration 285 335 410 1,030 In the current year, the middle and high schools experienced no change in revenues, but the preschools tuition revenue increased to $1.92 million. Marketing and administrative costs rose to $1,270,000. 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.)
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