Renoir Hotel & Casino is situated on beautiful Lake Tahoe in Nevada. The complex includes a $300-$room hotel, a casino, and a restaurant. As Renoir'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 $2020.$ You are presented with the following income statement information for $2019$:

$($Click the icon to view the data.$)$

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 $2019$ were $$14,610,000.$

Read the requiremer

Data table