Todweed Academy Allocates Marketing and Administrative Costs to Its Three

question 122

Multiple Choice

Todweed Academy allocates marketing and administrative costs to its three schools based on total annual tuition revenue for the schools: $\begin{array}{ccccc} & \text { Lower } & \text { Middle } & \text { Upper } \\{\text { School }} & \text { School } & \text { School } & \text { School } & \text { Total } \\\text { Tuition revenue } & \$ 1,000,000 & \$ 800,000 & \$ 1,200,000 & \$ 3,000,000\\\text { Marketing and }\\\text { administrative }&&&&\$1,200,000\end{array}$ Using revenue as an allocation base, the amount of costs allocated to the Lower School is calculated to be:

• A) $240,000.
• B) $320,000.
• C) $400,000.
• D) $480,000.
• E) $600,000.

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Definitions:

Pharmaceuticals

Medicinal drugs developed for diagnosis, treatment, or prevention of diseases and medical conditions in humans or animals.

Thermus Aquaticus

A species of bacteria that is thermophilic and was the original source of the enzyme Taq polymerase, widely used in PCR techniques.

Polymerase Chain Reaction

A laboratory technique used to amplify segments of DNA for various genetic analyses.

Genetic Engineering

Human-induced changes in the genome of an organism, often performed for the benefit of humans.