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E14-23 (similar to) Question Help Donatello Donatello Hotel & Casino is situated on beautiful Lake Tahoe in Nevada. The complex includes a 300-room hotel, a
E14-23 (similar to) Question Help Donatello Donatello Hotel & Casino is situated on beautiful Lake Tahoe in Nevada. The complex includes a 300-room hotel, a casino, and a restaurant. As Donatello Donatello'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 2017. You are presented with the following income statement information for 2016 2016: LOADING... (Click the icon to view the data.) You are also given the following data on the three divisions. LOADING... (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 2016 were $ 14 comma 620 comma 000 $14,620,000. Read the requirements LOADING... . 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 % % % Enter any number in the edit fields and then click Check Answer. 7 parts remaining Clear All Check Answer Data Table Hotel Restaurant Casino Revenues $ 18,273,000 $ 5,394,000 $ 12,440,000 Direct costs 9,800,000 3,924,600 4,561,700 Segment margin $ 8,473,000 $ 1,469,400 $ 7,878,300 PrintDone Data Table Hotel Restaurant Casino Floor space (square feet) 130,000 26,000 104,000 Number of employees 320 80 400 PrintDone
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