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

School Lower Middle Upper Total

School School School

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Tuition Revenue $1,180,000 $980,000 $1,290,000 $3,450,000

Marketing & Administrative $1,380,000

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

a. $312,000

b. $392,000

c. $472,000

d. $552,000

e. $672,000