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 $ 1,640 345 Middle School $ 1,940 395 High School $ 2,340 470 Total $ 5,920 1,210 In the current year, the middle and high schools experienced no change in revenues, but the preschool's tuition revenue increased to $2.04 million. Marketing and administrative costs rose to $1,390,000. 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.) Cost allocation Preschool Middle School High School Total $ 0
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 $ 1,640 345 Middle School $ 1,940 395 High School $ 2,340 470 Total $ 5,920 1,210 In the current year, the middle and high schools experienced no change in revenues, but the preschool's tuition revenue increased to $2.04 million. Marketing and administrative costs rose to $1,390,000. 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.) Cost allocation Preschool Middle School High School Total $ 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Am.203.
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:
Tuition revenue
Marketing and administration
Preschool
$ 1,640
345
Middle
School
$ 1,940
395
High School
$ 2,340
470
Total
$ 5,920
1,210
In the current year, the middle and high schools experienced no change in revenues, but the preschool's tuition revenue increased to
$2.04 million. Marketing and administrative costs rose to $1,390,000.
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.)
Cost allocation
Preschool
Middle School
High School
Total
$
0
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