i need help with requirement 2
Carpet-cleaning contract Contract to repaint rooms 50 570 $28,710 Pine Valley $ 9,150 Birch Glen Oak Glen $ 13,675 88,765 Mimosa $ 15,150 48,415 Total $ 49,180 298,420 Revenue (00es) Square feet Rooms $ 11,205 96,950 64, 290 86 122 66 174 448 $415,965 Assets (000s) $107,015 $ 83,855 $158,465 $ 66,630 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 1 Required 2 Required 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.) Allocation Base Total Revenue Square feet Number of rooms Assets 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: Front office personnel (desk, clerks, etc.) Administrative and executive salaries Interest on resort purchase Advertising Housekeeping Depreciation on reservations computer Room maintenance $12,100 5,700 4,700 600 3,700 1,210 se 570 Carpet-cleaning contract Contract to repaint rooms $28,710 Pine Birch Glen Valley $9,150 64, 290 Total $ 49,180 298,420 Oak Glen Mimosa Revenue (e00s) $ 13,675 88,765 $ 15,150 $ 11, 205 96,950 Square feet Rooms 48,415 66 $ 83,855 86 122 174 448 Assets (000s) $107,015 $158,465 $ 66,630 $415,965 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 youur answers in the tabs below. Required 1 Required 2 Required 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.) Allocation Blase Total Revenue |Square feet