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Please answer all parts!! Woodland Hotels Inc. operates four resorts in the heavily wooded areas of northern Californla. The resorts are named after the predominant
Please answer all parts!!
Woodland Hotels Inc. operates four resorts in the heavily wooded areas of northern Californla. 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 Carpet-cleaning contract Contract to repaint rooms $12,100 5,700 4,700 600 3,700 80 1,210 50 570 $28,710 eBook Pine Valley Oak Glen Mimosa Birch Glen Total Revenue (000s) $9,150 13,675 15,150 11,205 49,180 88,765 8,415 96,950 298,420 448 $107,015 $158,465 83,855 66, 630 $415,965 Square feet Rooms 64,290 122 174 Assets (000s) 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 1Required 2 Required 3 Based on annual revenue, what amount of the central office costs are allocated to each resort? (Do not round intermediate calculations. Enter your answers in thousands rounded to the nearest dollar.) Glen Glen lley Mimosa Allocated costStep by Step Solution
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