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Sand and Sea Resorts owns and operates two resorts in a coastal town. Both resorts are located on a barrier island that is connected to

Sand and Sea Resorts owns and operates two resorts in a coastal town. Both resorts are located on a barrier island that is connected to the mainland by a high bridge. One resort is located on the beach and is called the Crystal Coast Resort. The other resort is located on the inland waterway which passes between the town and the mainland; it is called the Harborview Resort. Some key information about the two resorts for the current year is shown below.
Harborview Crystal Coast Total
Revenue (000s) $ 3,500 $ 6,500 $ 10,000
Square feet 75,000225,000300,000
Rooms 60140200
Assets (000s) $ 112,000 $ 448,000 $ 560,000
The nontraceable operating costs of the resort amount to $4,000,000. By careful study, the management accountant at Sand and Sea has determined that, while the costs are not directly traceable, the total of $4 million could be fairly allocated to the four cost drivers as follows.
Cost Driver Amount Allocated
Revenue $ 230,000
Square feet 110,000
Rooms 600,000
Assets (000s)3,060,000
Using the information regarding the allocation of the $4 million to the four cost drivers, determine the amount of cost to be allocated to the Harborview Resort.

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