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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
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.) Allocation Base Pine Valley Oak Glen Mimosa Birch Glen Total Revenue Square feet Number of rooms Assets Total cost allocated Woodland Hotels Incorporated 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: 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 Revenue (000s) Square feet Rooms Assets (000s) Pine Valley $ 9,150 64,290 86 $ 107,015 Oak Glen $ 13,675 88,765 122 $ 158, 465 Mimosa $ 15,150 48,415 66 $ 83,855 Birch Glen Total $ 11,205 $ 49,180 96,950 298,420 174 448 $ 66,630 $ 415,965 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? 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 Mimosa Birch Glen Total Allocated cost 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 Total Revenue Square feet Number of rooms Assets
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