renoir hotel

FORMMAT Requirements

ACTUAL QUESTION

1 uirement 1. Calculate division margins in percentage terms prior to allocating fixed overhead costs. (Round your answers to two decimal places, Xxx) Hotel Restaurant Casino 1551 ision margin 28.17 % 64 59 % Requirement 2. Allocate indirect costs to the three divisions using each of the three allocation bases suggested. For each allocation base, calculate division operating margins after allocations, in dollars and as a percentage of revenues Allocate the indirect costs, then calculate the division operating margin in dollars and as a percentage of revenue for each segment Begin with cost allocation based on direct costs. (Round percentages, including intermediate calculations, to two decimal places, X.Xoc% Round dollar amounts to the rearest dollar Use parentheses or a minus sign for negative amounts.) Restaurant Casino Renoir Allocated fixed overhead costs $ 7859 488 3,188,640 3,511872 14.560.000 638,512 (1 633,440) 4.490.008 3.495,100 Operating margin Hotel $ $ $ Renoir $ Next, allocate costs based on floor space. (Round percentages, including intermediate calculations, to two decimal places, Xxx%. Round dollar amounts to the nearest dollar. Use parentheses or a minus sign for negative amounts) Hotel Restaurant Casino Allocated fixed overhead costs $7280,000 $ 1,455,000 5,824 000 3 14,560.000 Operating margin 1218.000 99 200 2.177 900 3.495.100 Operating margins 6.67% 17.61% Now allocate costs based on number of employees. (Round percentages, including intermediate calculutions, to two decimal places, Xx06% Round dollar amounts to the nearest dollar Use parentheses or a minus sign for negative amounts) 1.80 Help me solve this Etext pages Get more help Similar question Now allocate costs based on number of employees. (Round percentages, including intermediate calculations, to two decimal places, XXX%. Round dollar amounts to the nearest dollar Use parentheses or minus sign for negative amounts) Hotel Restaurant Casino Renoir Allocated fixed overhead costs $ 5.824 000 1.456,000 $ 7.200,000 5 14 580.000 2674000 99 200 721.900 395.100 Operating margin Operating margin 1.30 Requirement 3. Discuss the result How would you decide to allocate indirect costs to the divisions? Why? 5 84 Data table Hotel Restaurant Revenues $ 18,924,000 $ 9,850,000 6,375,000 $ 3,725,000 Casino 12,410,000 4,368,100 Direct costs $ 9,074,000 $ 2,650,000 $ 8,041,900 TO Segment margin Print Done sino and a restaurant As Rellini's new Data table Hotel Restaurant Casino 75,000 15,000 60,000 Floor space (square feet) Number of employees 400 100 500 C Print Done Requirements 1. Calculate division margins in percentage terms prior to allocating fixed overhead costs. 2. Allocate indirect costs to the three divisions using each of the three allocation bases suggested. For each allocation base, calculate division operating margins after allocations, in dollars and as a percentage of revenues. 3. Discuss the results. How would you decide how to allocate indirect costs to the divisions? Why? 4. Would you recommend closing any of the three divisions in the short run (and possibly reallocating resources to other divisions) as a result of your analysis? If so, which division would you close and why? Bellini Hotel & Casino is situated on beautiful Lake Tahoe in Nevada The complex includes a 300-room hotel, a casino, and a restaurant. As Bellini'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 on of the following direct costs, floor space, or the number of employees Total fixed overhead costs for 2019 were $14.610,000 Read the aucument Requirement 1. Calculate division margins in percentage terms prior to allocating fixed overhead conte (Round your answers to two decimal places, XXC) Casino Division margin Hotel Restaurant