(Cost Accounting)

I am having diffculty solving this whole question. Everything in blue is correct.

Bellini Hotel & Casino is situated on beautiful Lake Tahoe in Nevada. The complex includes a 300-room hotel, a casino, and a restaurant. As Bellini'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 2017. You are presented with the following income statement information for 2016: E: (Click the icon to view the data.) 2. 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 2016 were $14,570,000. Inc Read the requirements. - Data table Hotel Restaurant Casino Revenues $ 18,273,000 $ 9,725,000 6,427,000 $ 3,725,000 12,360,000 4,624,900 Direct costs $ 8,548,000 $ 2,702,000 $ 7,735,100 Segment margin LUOO Print Done O Data table Hotel Restaurant Casino 70,000 14,000 56,000 Floor space (square feet) Number of employees 240 60 300 Print Done 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 (and possibly reallocating resources to other divisions) as a result of your analysis? If so, which division would you close and why? Requirement 1. Calculate division margins in percentage terms prior to allocating fixed overhead costs. (Round your answers to two decimal places, X.XX.) Hotel Restaurant Casino Division margin 46.78 % 42.04 % 62.68 Requirement 2. Allocata 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. Alocate the Indirect costs, then calculate the division operating margin in dollars and as a percentage of revenue for each segment Bogin with cont allocation based on direct costs. (Round poroentages, including intermediate calculations, to two decimal placut, X.XX%. Round dolor amounts to the nearest dollar Use parentheses or a minus sign for negative amounts) Hotel Casino Allocated fixed overhead costs 752977000 288480000 358130000 (44.47) (28.35) Operating margin Operating margin% Restaurant Bellini (40.74) 1489 19.37% 3.64%