Todweed Academy allocates marketing and administrative costs to its three schools based on total annual tuition revenue for the schools:

School	Lower School			Middle School			Upper School			Total
Tuition revenue	$	1,340,000		$	1,140,000		$	1,370,000		$	3,850,000
Marketing and administrative										$	1,540,000

Using revenue as an allocation base, the amount of costs allocated to the Lower School is calculated to be:

Multiple Choice

• $616,000.

• $536,000.

• $376,000.

• $456,000.

• $736,000.