Organic Laboratories allocates research and development costs to its three research facilities based on each facility's total annual revenue from new product developments:

Facility location	Kentucky			Arizona			Illinois			Total
New product revenue	$	72,108,000		$	100,180,000		$	68,072,000		$	240,360,000
Research & Development										$	60,180,000

Using revenue as an allocation base, the amount of costs allocated to the Kentucky research facility is calculated to be:

Multiple Choice

• $18,018,000.

• $220,180,000.

• $9,009,000.

• $18,054,000.

• $24,036,000.