Organic Laboratories allocates research and development costs to its three research facilities based on each facility's total annual revenue from new product developments:$\begin{array}{ll}
\text { Facility location }&\text { Kentucky }&\text { Arizona }&\text { Illinois }&\text { Total }\
\text { New product }\
\text { revenue }&\$56,000,000&\$100,000,000&\$84,000,000&\$240,000,000\
\text { Research \& }\
(\text { Development }&&&&\$60,000,000\
\end{array}$
Using revenue as an allocation base, the amount of costs allocated to the Kentucky research facility is calculated to be:

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The Answer of Organic Laboratories allocates research and development costs to its three research facilities based on each facility's total annual revenue from new product developments:$\begin{array}{ll}
\text { Facility location }&\text { Kentucky }&\text { Arizona }&\text { Illinois }&\text { Total }\
\text { New product }\
\text { revenue }&\$56,000,000&\$100,000,000&\$84,000,000&\$240,000,000\
\text { Research \& }\
(\text { Development }&&&&\$60,000,000\
\end{array}$
Using revenue as an allocation base, the amount of costs allocated to the Kentucky research facility is calculated to be:

Organic Laboratories Allocates Research and Development Costs to Its Three