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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: Tuition revenue Marketing and administration Preschool $1,650 350 Middle High School School $1,950 $ 2,350 400 475 Total $ 5,950 1,225 In the current year, the middle and high schools experienced no change in revenues, but the preschool's tuition revenue increased to $2.05 million. Marketing and administrative costs rose to $1,400,000. 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.)

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: Tuition revenue Marketing and administration Preschool $1,650 350 Middle High School School $1,950 $ 2,350 400 475 Total $ 5,950 1,225 In the current year, the middle and high schools experienced no change in revenues, but the preschool's tuition revenue increased to $2.05 million. Marketing and administrative costs rose to $1,400,000. 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.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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: Middle Preschool School $1,650 $1,950 350 400 In the current year, the middle and high schools experienced no change in revenues, but the preschool's tuition revenue increased to $2.05 million. Marketing and administrative costs rose to $1,400,000. Tuition revenue Marketing and administration Cost allocation 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 High School $ 2,350 475 Middle School High School Total $ 5,950 1,225 $ Total 0
Transcribed Image Text: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: Middle Preschool School $1,650 $1,950 350 400 In the current year, the middle and high schools experienced no change in revenues, but the preschool's tuition revenue increased to $2.05 million. Marketing and administrative costs rose to $1,400,000. Tuition revenue Marketing and administration Cost allocation 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 High School $ 2,350 475 Middle School High School Total $ 5,950 1,225 $ Total 0
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