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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 school's annual tuition revenue (as a percentage of the total). Last year the allocations (000s omitted) were as follows: a Middle High Preschool School School Total Tuition revenue $ 1,700 $ 2,000 $ 2,400 $ 6,100 Marketing and administration 375 425 500 1,300 In the current year, the middle and high schools experienced no change in revenues, but the preschool's tuition revenue increased to $2.1 million. Marketing and administrative costs rose to $1,450,000. 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.) Preschool Middle School High School Total Cost allocation $
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