Monet Hotel & Casino is situated on beautiful Lake Tahoe in Nevada. The complex includes a 300-room hotel, a casino, and a restaurant. As Monet'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: (Click the icon to view the data.) Data table 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 $14,590,000. Data table Hotel Restaurant Casino Revenues 16,850,000 $ 9,825,000 7,936,000 $ 3,924,600 12,350,000 Hotel Restaurant Casino 4,493,200 Direct costs Floor space (square feet) 70,000 14,000 56,000 $ 7,025,000 $ 4,011,400 $ 7,856,800 Segment margin Number of employees 120 30 150