Answer and Label Each Part 1 through 8:

Barbari Hotel \& Casino is situated on beautiful Lake Tahoe in Nevada. The complex includes a 300-room hotel, a casino, and a restaurant. As Barbari's new controller, your manager asks you to recommend the basis the hotel should use for allocating fixed overhead costs to the three divisions in 2020. You are presented with the following income statement information for 2019: (Click the icon to view the data.) You are also given the following data on the three divisions. (Click the icon to view the data.) You are told that you may choose to allocate indirect costs based on one of the following: direct costs, floor space, or the number of employees. Total fixed overhead costs for 2019 were $14,600,000. Requirement 1. Calculate division margins in percentage terms prior to allocating fixed overhead costs. (Round your answers to two decimal places, X.XX.) Data table Barbari Hotel \& Casino is situated on beautiful Lake Tahoe in Nevada. The complex includes a 300-room hotel, a casino, and a restaurant. As Barbari's new controller, your manager asks you to recommend the basis the hotel should use for allocating fixed overhead costs to the three divisions in 2020 . You are presented with the following income statement information for 2019: (Click the icon to view the data.) You are also given the following data on the three divisions. (Click the icon to view the data.) You are told that you may choose to allocate indirect costs based on one of the following: direct costs, floor space, or the number of employees. Total fixed overhead costs for 2019 were $14,600,000. Requirement 1. Calculate division margins in percentage terms prior to allocating fixed overhead costs. (Round your answers to two decimal places, X.XX.) Data table Barbari Hotel \& Casino is situated on beautiful Lake Tahoe in Nevada. The complex includes a 300-room hotel, a casino, and a restaurant. As Barbari's new controller, your manager asks you to recommend the basis the hotel should use for allocating fixed overhead costs to the three divisions in 2020. You are presented with the following income statement information for 2019 : (Click the icon to view the data.) You are also given the following data on the three divisions. (Click the icon to view the data.) You are told that you may choose to allocate indirect costs based on one of the following: direct costs, floor space, or the number of employees. Total fixed overhead costs for 2019 were $14,600,000. Requirement 1. Calculate division margins in percentage terms prior to allocating fixed overhead costs. (Round your answers to two decimal places, X.XX.) Requirements 1. Calculate division margins in percentage terms prior to allocating fixed overhead costs. 2. Allocate indirect costs to the three divisions using each of the three allocation bases suggested. For each allocation base, calculate division operating margins after allocations, in dollars and as a percentage of revenues. 3. Discuss the results. How would you decide how to allocate indirect costs to the divisions? Why? 4. Would you recommend closing any of the three divisions in the short run (and possibly reallocating resources to other divisions) as a result of your analysis? If so, which division would you close and why? ful Lake Tahoe in urant. As Rembra the hotel should ust's new controller, ou are presented with for allocating fixed You are told that you may choose to allocate the following: direct costs, floor space, or the overhead costs for 2019 were $14,640,000. Read the requirements. sercentage terms prior to allocating fixed overhead costs. (Round your answers to two decimal hree divisions using each of the three allocation bases suggested. For each allocation base, calc of revenues. ivision operating margin in dollars and as a percentage of revenue for each segment. s. (Round percentages, including intermediate calculations, to two decimal places, X.X\%\%. Roun gative amounts.) situated on beautiful Lake Tahoe in Nevada. The complex asino, and a restaurant. As Rembrandt's new controller, ommend the basis the hotel should use for allocating fixed isions in 2020 . You are presented with the following income data.) (Click the icon to view the You are told that you may choc the following: direct costs, floor overhead costs for 2019 were Read the requirements. inus sign for negative amounts.) floor space. (Round percentages, including intermediate calculations, to two decimal places, X.XX%. r negative amounts.) Now allocate costs based on number of employees. (Round percentages, including intermediate calculations, to two decir dollar. Use parentheses or a minus sign for negative amounts.) Requirement 3. Discuss the results. How would you decide to allocate indirect costs to the divisions? Why? includes a 300 -room hotel, a casino, and a restaurant. As Rembrandt's new controller, your manager asks you to recommend the basis the hotel should use for allocating fixed overhead costs to the three divisions in 2020 . You are presented with the following income statement information for 2019 : (Click the icon to view the data.) Operating margin \% % % % Requirement 3 . Discuss the results. How would you decide to allocate indirect costs to the divisions? Why? There is in the operating margin percentages depending upon which allocation base is chosen. Wh and criteria are recommended. The $14,640,000 is a overhead cost. This means that on a sh appropriate but Rembrandt could attempt to identify the cost driversfor these costs in the long run. Rembrandt should look three divisions. This will help guide the choice of an allocation base in the short run. Requirement 4. Would you recommend closing any of the three divisions in the short run (and possibly reallocating resour which division would you close and why? The analysis in requirement 2 should not guide the decision on whether to shut down any of the divisions. The overhead how these costs would be affected in the long run if Rembrandt shut down one of the divisions. Also, each div shut down the restaurant. for example. would likely have a negative effect on the attendance at the casino and the hotel dt Hotel \& Casino is situated on beautiful Lake Tahoe in Nevada. The complex a 300-room hotel, a casino, and a restaurant. As Rembrandt's new controller, ager asks you to recommend the basis the hotel should use for allocating fixed costs to the three divisions in 2020 . You are presented with the following income t informa Data table You are also given the follow Eg. (Click the icon to view the You are told that you may cho act costs, floc 2019 were nents. 1. Where cos n a short-run look at how esources to sis in re head costs ar Now allocate costs based on number of employees. (Round percentages, including intermediate calculations, to two decir dollar. Use parentheses or a minus sign for negative amounts.) Requirement 3. Discuss the results. How would you decide to allocate indirect costs to the divisions? Why? Rembrandt Hotel \& Casino is situated on beautiful Lake Tahoe in Nevada. The complex includes a 300-room hotel, a casino, and a restaurant. As Rembrandt's new controller, your manager asks you to recommend the basis the hotel should use for allocating fixed overhead costs to the three divisions in 2020. You are presented with the following income statement information for 2019 : (Click the icon to view the data.) You are also given the following data on the three divisions. (Click the icon to view the data.) You are told that you may choose to allocate indirect costs based on one of the following: direct costs, floor space, or the number of employees. Total fixed overhead costs for 2019 were $14,640,000. Requirement 1. Calculate division margins in percentage terms prior to allocating fixed overhead costs. (Round your answers to two decimal places, X.XX.) Requirement 2. Allocate indirect costs to the three divisions using each of the three allocation bases suggested. For each allocation base, calculate division operating margins after allocations, in dollars and as a percentage of revenues. Allocate the indirect costs, then calculate the division operating margin in dollars and as a percentage of revenue for each segment. Begin with cost allocation based on direct costs. (Round percentages, including intermediate calculations, to two decimal places, X.XX\%. Round dollar amounts to the nearest dollar. Use parentheses or a minus sign for negative amounts.) Data table Rembrandt Hotel \& Casino is situated on beautiful Lake Tahoe in Nevada. The complex includes a 300-room hotel, a casino, and a restaurant. As Rembrandt's new controller, your manager asks you to recommend the basis the hotel should use for allocating fixed overhead costs to the three divisions in 2020. You are presented with the following income statement information for 2019: (Click the icon to view the data.) You are also given the following data on the three divisions. (Click the icon to view the data.) You are told that you may choose to allocate indirect costs based on one of the following: direct costs, floor space, or the number of employees. Total fixed overhead costs for 2019 were $14,640,000. Requirement 1. Calculate division margins in percentage terms prior to allocating fixed overhead costs. (Round your answers to two decimal places, X.XX.) Requirement 2. Allocate indirect costs to the three divisions using each of the three allocation bases suggested. For each allocation base, calculate division operating margins after allocations, in dollars and as a percentage of revenues. Allocate the indirect costs, then calculate the division operating margin in dollars and as a percentage of revenue for each segment. Begin with cost allocation based on direct costs. (Round percentages, including intermediate calculations, to two decimal places, X.XX\%. Round dollar amounts to the nearest dollar. Use parentheses or a minus sign for negative amounts.) Data table Rembrandt Hotel \& Casino is situated on beautiful Lake Tahoe in Nevada. The complex includes a 300-room hotel, a casino, and a restaurant. As Rembrandt's new controller, your manager asks you to recommend the basis the hotel should use for allocating fixed overhead costs to the three divisions in 2020. You are presented with the following income statement information for 2019: (Click the icon to view the data.) You are also given the following data on the three divisions. (Click the icon to view the data.) You are told that you may choose to allocate indirect costs based on one of the following: direct costs, floor space, or the number of employees. Total fixed overhead costs for 2019 were $14,640,000. Requirement 1. Calculate division margins in percentage terms prior to allocating fixed overhead costs. (Round your answers to two decimal places, X.XX.) Requirement 2. Allocate indirect costs to the three divisions using each of the three allocation bases suggested. For each allocation base, calculate division operating margins after allocations, in dollars and as a percentage of revenues. Allocate the indirect costs, then calculate the division operating margin in dollars and as a percentage of revenue for each segment. Begin with cost allocation based on direct costs. (Round percentages, including intermediate calculations, to two decimal places, X.XX\%. Round dollar amounts to the nearest dollar. Use parentheses or a minus sign for negative amounts.) Requirements 1. Calculate division margins in percentage terms prior to allocating fixed overhead costs. 2. Allocate indirect costs to the three divisions using each of the three allocation bases suggested. For each allocation base, calculate division operating margins after allocations, in dollars and as a percentage of revenues. 3. Discuss the results. How would you decide how to allocate indirect costs to the divisions? Why? 4. Would you recommend closing any of the three divisions in the short run (and possibly reallocating resources to other divisions) as a result of your analysis? If so, which division would you close and why? Barbari Hotel \& Casino is situated on beautiful Lake Tahoe in Nevada. The complex includes a 300-room hotel, a casino, and a restaurant. As Barbari's new controller, your manager asks you to recommend the basis the hotel should use for allocating fixed overhead costs to the three divisions in 2020. You are presented with the following income statement information for 2019: (Click the icon to view the data.) You are also given the following data on the three divisions. (Click the icon to view the data.) You are told that you may choose to allocate indirect costs based on one of the following: direct costs, floor space, or the number of employees. Total fixed overhead costs for 2019 were $14,600,000. Requirement 1. Calculate division margins in percentage terms prior to allocating fixed overhead costs. (Round your answers to two decimal places, X.XX.) Data table Barbari Hotel \& Casino is situated on beautiful Lake Tahoe in Nevada. The complex includes a 300-room hotel, a casino, and a restaurant. As Barbari's new controller, your manager asks you to recommend the basis the hotel should use for allocating fixed overhead costs to the three divisions in 2020 . You are presented with the following income statement information for 2019: (Click the icon to view the data.) You are also given the following data on the three divisions. (Click the icon to view the data.) You are told that you may choose to allocate indirect costs based on one of the following: direct costs, floor space, or the number of employees. Total fixed overhead costs for 2019 were $14,600,000. Requirement 1. Calculate division margins in percentage terms prior to allocating fixed overhead costs. (Round your answers to two decimal places, X.XX.) Data table Barbari Hotel \& Casino is situated on beautiful Lake Tahoe in Nevada. The complex includes a 300-room hotel, a casino, and a restaurant. As Barbari's new controller, your manager asks you to recommend the basis the hotel should use for allocating fixed overhead costs to the three divisions in 2020. You are presented with the following income statement information for 2019 : (Click the icon to view the data.) You are also given the following data on the three divisions. (Click the icon to view the data.) You are told that you may choose to allocate indirect costs based on one of the following: direct costs, floor space, or the number of employees. Total fixed overhead costs for 2019 were $14,600,000. Requirement 1. Calculate division margins in percentage terms prior to allocating fixed overhead costs. (Round your answers to two decimal places, X.XX.) Requirements 1. Calculate division margins in percentage terms prior to allocating fixed overhead costs. 2. Allocate indirect costs to the three divisions using each of the three allocation bases suggested. For each allocation base, calculate division operating margins after allocations, in dollars and as a percentage of revenues. 3. Discuss the results. How would you decide how to allocate indirect costs to the divisions? Why? 4. Would you recommend closing any of the three divisions in the short run (and possibly reallocating resources to other divisions) as a result of your analysis? If so, which division would you close and why? ful Lake Tahoe in urant. As Rembra the hotel should ust's new controller, ou are presented with for allocating fixed You are told that you may choose to allocate the following: direct costs, floor space, or the overhead costs for 2019 were $14,640,000. Read the requirements. sercentage terms prior to allocating fixed overhead costs. (Round your answers to two decimal hree divisions using each of the three allocation bases suggested. For each allocation base, calc of revenues. ivision operating margin in dollars and as a percentage of revenue for each segment. s. (Round percentages, including intermediate calculations, to two decimal places, X.X\%\%. Roun gative amounts.) situated on beautiful Lake Tahoe in Nevada. The complex asino, and a restaurant. As Rembrandt's new controller, ommend the basis the hotel should use for allocating fixed isions in 2020 . You are presented with the following income data.) (Click the icon to view the You are told that you may choc the following: direct costs, floor overhead costs for 2019 were Read the requirements. inus sign for negative amounts.) floor space. (Round percentages, including intermediate calculations, to two decimal places, X.XX%. r negative amounts.) Now allocate costs based on number of employees. (Round percentages, including intermediate calculations, to two decir dollar. Use parentheses or a minus sign for negative amounts.) Requirement 3. Discuss the results. How would you decide to allocate indirect costs to the divisions? Why? includes a 300 -room hotel, a casino, and a restaurant. As Rembrandt's new controller, your manager asks you to recommend the basis the hotel should use for allocating fixed overhead costs to the three divisions in 2020 . You are presented with the following income statement information for 2019 : (Click the icon to view the data.) Operating margin \% % % % Requirement 3 . Discuss the results. How would you decide to allocate indirect costs to the divisions? Why? There is in the operating margin percentages depending upon which allocation base is chosen. Wh and criteria are recommended. The $14,640,000 is a overhead cost. This means that on a sh appropriate but Rembrandt could attempt to identify the cost driversfor these costs in the long run. Rembrandt should look three divisions. This will help guide the choice of an allocation base in the short run. Requirement 4. Would you recommend closing any of the three divisions in the short run (and possibly reallocating resour which division would you close and why? The analysis in requirement 2 should not guide the decision on whether to shut down any of the divisions. The overhead how these costs would be affected in the long run if Rembrandt shut down one of the divisions. Also, each div shut down the restaurant. for example. would likely have a negative effect on the attendance at the casino and the hotel dt Hotel \& Casino is situated on beautiful Lake Tahoe in Nevada. The complex a 300-room hotel, a casino, and a restaurant. As Rembrandt's new controller, ager asks you to recommend the basis the hotel should use for allocating fixed costs to the three divisions in 2020 . You are presented with the following income t informa Data table You are also given the follow Eg. (Click the icon to view the You are told that you may cho act costs, floc 2019 were nents. 1. Where cos n a short-run look at how esources to sis in re head costs ar Now allocate costs based on number of employees. (Round percentages, including intermediate calculations, to two decir dollar. Use parentheses or a minus sign for negative amounts.) Requirement 3. Discuss the results. How would you decide to allocate indirect costs to the divisions? Why? Rembrandt Hotel \& Casino is situated on beautiful Lake Tahoe in Nevada. The complex includes a 300-room hotel, a casino, and a restaurant. As Rembrandt's new controller, your manager asks you to recommend the basis the hotel should use for allocating fixed overhead costs to the three divisions in 2020. You are presented with the following income statement information for 2019 : (Click the icon to view the data.) You are also given the following data on the three divisions. (Click the icon to view the data.) You are told that you may choose to allocate indirect costs based on one of the following: direct costs, floor space, or the number of employees. Total fixed overhead costs for 2019 were $14,640,000. Requirement 1. Calculate division margins in percentage terms prior to allocating fixed overhead costs. (Round your answers to two decimal places, X.XX.) Requirement 2. Allocate indirect costs to the three divisions using each of the three allocation bases suggested. For each allocation base, calculate division operating margins after allocations, in dollars and as a percentage of revenues. Allocate the indirect costs, then calculate the division operating margin in dollars and as a percentage of revenue for each segment. Begin with cost allocation based on direct costs. (Round percentages, including intermediate calculations, to two decimal places, X.XX\%. Round dollar amounts to the nearest dollar. Use parentheses or a minus sign for negative amounts.) Data table Rembrandt Hotel \& Casino is situated on beautiful Lake Tahoe in Nevada. The complex includes a 300-room hotel, a casino, and a restaurant. As Rembrandt's new controller, your manager asks you to recommend the basis the hotel should use for allocating fixed overhead costs to the three divisions in 2020. You are presented with the following income statement information for 2019: (Click the icon to view the data.) You are also given the following data on the three divisions. (Click the icon to view the data.) You are told that you may choose to allocate indirect costs based on one of the following: direct costs, floor space, or the number of employees. Total fixed overhead costs for 2019 were $14,640,000. Requirement 1. Calculate division margins in percentage terms prior to allocating fixed overhead costs. (Round your answers to two decimal places, X.XX.) Requirement 2. Allocate indirect costs to the three divisions using each of the three allocation bases suggested. For each allocation base, calculate division operating margins after allocations, in dollars and as a percentage of revenues. Allocate the indirect costs, then calculate the division operating margin in dollars and as a percentage of revenue for each segment. Begin with cost allocation based on direct costs. (Round percentages, including intermediate calculations, to two decimal places, X.XX\%. Round dollar amounts to the nearest dollar. Use parentheses or a minus sign for negative amounts.) Data table Rembrandt Hotel \& Casino is situated on beautiful Lake Tahoe in Nevada. The complex includes a 300-room hotel, a casino, and a restaurant. As Rembrandt's new controller, your manager asks you to recommend the basis the hotel should use for allocating fixed overhead costs to the three divisions in 2020. You are presented with the following income statement information for 2019: (Click the icon to view the data.) You are also given the following data on the three divisions. (Click the icon to view the data.) You are told that you may choose to allocate indirect costs based on one of the following: direct costs, floor space, or the number of employees. Total fixed overhead costs for 2019 were $14,640,000. Requirement 1. Calculate division margins in percentage terms prior to allocating fixed overhead costs. (Round your answers to two decimal places, X.XX.) Requirement 2. Allocate indirect costs to the three divisions using each of the three allocation bases suggested. For each allocation base, calculate division operating margins after allocations, in dollars and as a percentage of revenues. Allocate the indirect costs, then calculate the division operating margin in dollars and as a percentage of revenue for each segment. Begin with cost allocation based on direct costs. (Round percentages, including intermediate calculations, to two decimal places, X.XX\%. Round dollar amounts to the nearest dollar. Use parentheses or a minus sign for negative amounts.) Requirements 1. Calculate division margins in percentage terms prior to allocating fixed overhead costs. 2. Allocate indirect costs to the three divisions using each of the three allocation bases suggested. For each allocation base, calculate division operating margins after allocations, in dollars and as a percentage of revenues. 3. Discuss the results. How would you decide how to allocate indirect costs to the divisions? Why? 4. Would you recommend closing any of the three divisions in the short run (and possibly reallocating resources to other divisions) as a result of your analysis? If so, which division would you close and why