Question:
Caesars Entertainment Corporation (CEC) has several properties in Las Vegas, Nevada, which it owns or manages. The following list of selected property-related data is taken from CEC's 2014 Form 10-K, Item 2, pages 31-32.
Calculate a cost activity pool rate for each of the following pools. Use an activity measure for the denominator from the above table. Justify your choice of the cost driver for each of the cost pools. Please note that there may not be just one correct answer for one or more of these cost pools.
Transcribed Image Text:
Caesars Entertainment Corporation Selected property data adapted from Form 10K, Item 2, pages 31-32 As of December 31, 2014 Hotel Casino space- square feet Slot Table rooms & machines Property suites games 72,300 Flamingo Las Vegas 1,110 120 3,460 Harrah's Las Vegas Paris Las Vegas 2,720 90,600 1,280 90 1,020 2,920 95,300 100 Rio All-Suites Hotel & Casino 117,300 1,070 90 2,520 Bally's Las Vegas 2,810 66,200 1,000 70 28,100 The Cromwell 450 60 188 64,500 2,500 Planet Hollywood 1,100 90 The LINQ Hotel & Casino 62,200 750 70 2,250 Caesars Palace Las Vegas 1,300 3,960 123,700 170 23,328 Totals 720,200 9,080 860 Item Cost pool Slot machine maintenance costs b. Total $ 1,952,200 a. Casino utilities expenses Property taxes Housekeeper wages and benefits Casino dealer wages and benefits $ 43,212,000 $ 6,200,000 $ 12,947,040 C. d. e. $ 15,050,000 Ф