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TB MC Qu. 18-107 (Algo) The amount of cost to be allocated to the Harborview Resort: Sand and Sea Resorts Sand and Sea Resorts

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TB MC Qu. 18-107 (Algo) The amount of cost to be allocated to the Harborview Resort: Sand and Sea Resorts 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 Cost 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 e cument Revenue (0005) Square feat Rooms Assets (000) Harborview Crystal Cost $ 10, $ 3,500 75,000 225,000 $ 120,000 $650,000 The musceable operating coas of the resort amount to $4,000,000. By cared study, the manegerent accoumant at Sand and Sea has determined that while t to the four cost drivers follows Cost Driver Revenue Square feet Allocated $275,000 600,000 3,000,000 Using the formation regarding the allocation of the the four cost drivers, dieterreine the amount of cont allocated to the Harborview Mumple Chace O 000 M0500 $125.000 casts are not directly traceable, the a o $4. could be fairly located C

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