4 Exercises 18-41 Allocation of Central Costs; Profit Centers [LO 18-3] Woodland Hotels Inc. operates four resorts in the heavily wooded areas of northern California. The resorts are named after the predominant trees at the resort: Pine Valley, Oak Glen, Mimosa, and Birch Glen. Woodland allocates its central office costs to each of the four resorts according to the annual revenue the resort generates. For the current year, the central office costs (000s omitted) were as follows: 0.83 points Front office personnel (desk, clerks, etc.) Administrative and executive salaries Interest on resort purchase Advertising Housekeeping Depreciation on reservations computer Room maintenance Carpet-cleaning contract Contract to repaint rooms $10,000 5,000 4,000 600 3,000 80 1,000 50 500 eBook Print References $24,230 Pine Valley Oak Glen Mimosa Birch Glen Total Revenue (000s) Square feet Rooms Assets (000s) $ 7,750 11,580 12,830 9,490 41,650 83,735 4,655 91,455 281,505 448 $100,975 $149,485 79,080 62,855 $392,395 60,660 86 122 Required 1. Based on annual revenue, what amount of the central office costs are allocated to each resort? 2. Suppose that the current methods were replaced with a system of four separate cost pools with costs collected in the four pools allocated on the basis of revenues, assets invested in each resort, square footage, and number of rooms, respectively. Which costs should be collected in each of the four pools? 3. Using the cost pool system in requirement 2, how much of the central office costs would be allocated to each resort? Complete this question by entering your answers in the tabs below Required 1Required 2 Required 3 Based on annual revenue, what amount of the central office costs are allocated to each resort? (Do not round intermediate calculations. Enter your answers in thousands rounded to the nearest dollar.) Pine Valley Oak Glen Mimosa Birch Glen Allocated cost 4 Housekeeping Depreciation on reservations computer Room maintenance Carpet-cleaning contract Contract to repaint rooms 3,000 80 1,000 50 500 $24,230 0.83 points Pine Valley Oak Glen Mimosa Birch Glen Total eBook Revenue (000s) Square feet RoomS Assets (000s) $ 7,750 11,580 12,830 9,490 41,650 83,735 4,655 91,455 281,505 448 $100,975 $149,485 79,080 62,855 392,395 60,660 86 122 174 Print Required 1. Based on annual revenue, what amount of the central office costs are allocated to each resort? 2. Suppose that the current methods were replaced with a system of four separate cost pools with costs collected in the four pools allocated on the basis of revenues, assets invested in each resort, square footage, and number of rooms, respectively. Which costs should be collected in each of the four pools? 3. Using the cost pool system in requirement 2, how much of the central office costs would be allocated to each resort? References Complete this question by entering your answers in the tabs below Required 1Required 2Required 3 Suppose that the current methods were replaced with a system of four separate cost pools with costs collected in the four pools allocated on the basis of revenues, assets invested in each resort, square footage, and number of rooms, respectively Which costs should be collected in each of the four pools? (Enter your answers in thousands of dollars.) llocation Base Revenue Square feet Number of rooms Assets Housekeeping Depreciation on reservations computer Room maintenance Carpet-cleaning contract Contract to repaint rooms 3,000 80 1,000 50 500 $24,230 0.83 points Pine Valley Oak Glen Mimosa Birch Glen Total eBook Revenue (000s) Square feet Rooms Assets (000s) $ 7,750 11,580 12,830 9,490 41,650 83,735 45, 655 91,455 281,505 60,660 86 8448 122 174 $100,975 $149,485 79,080 62,855 392,395 Print Required 1. Based on annual revenue, what amount of the central office costs are allocated to each resort? 2. Suppose that the current methods were replaced with a system of four separate cost pools with costs collected in the four pools allocated on the basis of revenues, assets invested in each resort, square footage, and number of rooms, respectively. Which costs should be collected in each of the four pools? 3. Using the cost pool system in requirement 2, how much of the central office costs would be allocated to each resort? Complete this question by entering your answers in the tabs below Required 1Required 2 Required 3 Using the cost pool system in requirement 2, how much of the central office costs would be allocated to each resort? (Do not round intermediate calculations. Enter your answers in thousands rounded to the nearest dollar.) llocation Base Pine Valley Glen Mimosa Birch Glen Revenue Square feet Number of rooms Assets 19 Total cost allocated 4 Exercises 18-41 Allocation of Central Costs; Profit Centers [LO 18-3] Woodland Hotels Inc. operates four resorts in the heavily wooded areas of northern California. The resorts are named after the predominant trees at the resort: Pine Valley, Oak Glen, Mimosa, and Birch Glen. Woodland allocates its central office costs to each of the four resorts according to the annual revenue the resort generates. For the current year, the central office costs (000s omitted) were as follows: 0.83 points Front office personnel (desk, clerks, etc.) Administrative and executive salaries Interest on resort purchase Advertising Housekeeping Depreciation on reservations computer Room maintenance Carpet-cleaning contract Contract to repaint rooms $10,000 5,000 4,000 600 3,000 80 1,000 50 500 eBook Print References $24,230 Pine Valley Oak Glen Mimosa Birch Glen Total Revenue (000s) Square feet Rooms Assets (000s) $ 7,750 11,580 12,830 9,490 41,650 83,735 4,655 91,455 281,505 448 $100,975 $149,485 79,080 62,855 $392,395 60,660 86 122 Required 1. Based on annual revenue, what amount of the central office costs are allocated to each resort? 2. Suppose that the current methods were replaced with a system of four separate cost pools with costs collected in the four pools allocated on the basis of revenues, assets invested in each resort, square footage, and number of rooms, respectively. Which costs should be collected in each of the four pools? 3. Using the cost pool system in requirement 2, how much of the central office costs would be allocated to each resort? Complete this question by entering your answers in the tabs below Required 1Required 2 Required 3 Based on annual revenue, what amount of the central office costs are allocated to each resort? (Do not round intermediate calculations. Enter your answers in thousands rounded to the nearest dollar.) Pine Valley Oak Glen Mimosa Birch Glen Allocated cost 4 Housekeeping Depreciation on reservations computer Room maintenance Carpet-cleaning contract Contract to repaint rooms 3,000 80 1,000 50 500 $24,230 0.83 points Pine Valley Oak Glen Mimosa Birch Glen Total eBook Revenue (000s) Square feet RoomS Assets (000s) $ 7,750 11,580 12,830 9,490 41,650 83,735 4,655 91,455 281,505 448 $100,975 $149,485 79,080 62,855 392,395 60,660 86 122 174 Print Required 1. Based on annual revenue, what amount of the central office costs are allocated to each resort? 2. Suppose that the current methods were replaced with a system of four separate cost pools with costs collected in the four pools allocated on the basis of revenues, assets invested in each resort, square footage, and number of rooms, respectively. Which costs should be collected in each of the four pools? 3. Using the cost pool system in requirement 2, how much of the central office costs would be allocated to each resort? References Complete this question by entering your answers in the tabs below Required 1Required 2Required 3 Suppose that the current methods were replaced with a system of four separate cost pools with costs collected in the four pools allocated on the basis of revenues, assets invested in each resort, square footage, and number of rooms, respectively Which costs should be collected in each of the four pools? (Enter your answers in thousands of dollars.) llocation Base Revenue Square feet Number of rooms Assets Housekeeping Depreciation on reservations computer Room maintenance Carpet-cleaning contract Contract to repaint rooms 3,000 80 1,000 50 500 $24,230 0.83 points Pine Valley Oak Glen Mimosa Birch Glen Total eBook Revenue (000s) Square feet Rooms Assets (000s) $ 7,750 11,580 12,830 9,490 41,650 83,735 45, 655 91,455 281,505 60,660 86 8448 122 174 $100,975 $149,485 79,080 62,855 392,395 Print Required 1. Based on annual revenue, what amount of the central office costs are allocated to each resort? 2. Suppose that the current methods were replaced with a system of four separate cost pools with costs collected in the four pools allocated on the basis of revenues, assets invested in each resort, square footage, and number of rooms, respectively. Which costs should be collected in each of the four pools? 3. Using the cost pool system in requirement 2, how much of the central office costs would be allocated to each resort? Complete this question by entering your answers in the tabs below Required 1Required 2 Required 3 Using the cost pool system in requirement 2, how much of the central office costs would be allocated to each resort? (Do not round intermediate calculations. Enter your answers in thousands rounded to the nearest dollar.) llocation Base Pine Valley Glen Mimosa Birch Glen Revenue Square feet Number of rooms Assets 19 Total cost allocated