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? Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 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.) Pine Valley Oak Glen $ 4,015 $ 6,000 Mimosa $ 6,649 Birch Glen $ 4,916 Total 21,580 Allocated cost $ 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 Revenue $ Square feet Number of rooms Total 14,100 50 X 3,850 X 3,580 $ $ Assets Required 1 Required 2 Required 3 Using the cost pool system in requirement 2, how much of the central office costs would be allocated to each resort? (Do not round intermediate calculations. Enter your answers in thousands rounded to the nearest dollar.) Birch Glen Total $ $ $ $ 10,888 Allocation Base Revenue Square feet Number of rooms Assets Pine Valley 2,623 11 X 739 921 X 50 Oak Glen 3,921 $ 15 X 1,048 X 1,364 X 6,348 Mimosa 4,344 8 X 567 X 722 X 5,641 16X 1,495 X 573 X 2,084 / 3,849 3,580 18,367 Total cost allocated 4,294 $ $ $ $ Reluri LU queSLIUNT 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: 0.31 points 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 $ 9,000 4,500 3,500 600 2,500 80 900 50 450 $21,580 Revenue (000s) Square feet Rooms Assets (000s) Pine Valley $ 6,350 58,065 86 $ 96,660 Oak Glen $ 9,490 80,190 122 $143,160 Mimosa $ 10,515 43,720 66 $ 75,730 Birch Glen $ 7,775 87,560 174 $ 60,175 Total $ 34,130 269,535 448 $375,725
