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Consider Oak Hotel which has two main revenue segments: hotel rooms and conference rooms. Sales revenue based on segment, direct costs, and non-allocated indirect
Consider Oak Hotel which has two main revenue segments: hotel rooms and conference rooms. Sales revenue based on segment, direct costs, and non-allocated indirect costs are presented below. Allocate the indirect costs if the hotel consists of 100,000 square feet in total, with conference rooms accounting for 40,000 square feet of the total space and hotel rooms the remainder. Do not enter dollar signs or commas in the input boxes. Oak Hotel Income Statement For the Month Ended September 30, 2020 Conference Rooms Total Hotel Rooms Sales Revenue $220,000 Direct Costs $114,000 $139,000 $359,000 $91,000 $205,000 Contribution Income $106,000 $48,000 $154,000 Indirect Costs $54286 x $21714 x $76,000 Operating Income 551714 x $26286 x $78,000 Contact us!
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