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the first two pictures are the data pertaining to the question the third picture is the question and the fourth picture contains additional info ct
the first two pictures are the data pertaining to the question the third picture is the question and the fourth picture contains additional info
ct costs based on one of the following: direct costs, floor space, or the number of employ Data Table pal Revenues Hotel Restaurant 17,592,000 $ 7,936,000 $ 9,875,000 4,310,600 7,717,000 $ 3,625,400 $ Casino 12,420,000 4,420,800 7,999 200 calcu Direct costs is $ Segment margin oundc ht Print Done 000 4,310,600 3,625,400 4,420,800 7.999,200 18,606,400 19341600 ,000 45 689 64.41 % ne ure Data Table edil Hotel 110,000 ue Floor space (square feet) Number of employees Restaurant 22,000 30 Casino 88,000 150 ion 120 Roy No. R S.) Print Done 00 L restaurant 4,310,600 3,625,400 45.68 % CASIO 4,420,800 7,999 200 Donatello 18,606,400 1934 1600 200 .87 % 64.41 % e indirect costs based on one of the following direct costs, floor space or the number of employees. Total fixer Requirements sing places, XXX the the e ofre 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 and possibly reallocating resources to other divisions) as a result of your analysis? If so, which division would you close and why? alculate division the di und dollar amounts ct costs e amou Hotel 9,875 Print Done 7.717 43.87 % 64.41 % 45.68 % and then click Check Answer 2015 (5 complete) HW Score: 35.17%, 1.76 of 5 pts Score: 0.06 of 1 pt %E14-21 (similar to) Question Help Donatello Hotel & Casino is situated on beautiful Lake Tahoe in Nevada The complex includes a 300-room hotel, a casino, and a restaurant As Donatello'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 2014. You are presented with the following income statement information for 2013 (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 one of the following direct costs, floor space, or the number of employees. Total fixed overhead costs for 2013 was $14,580,000 Read the requirements Requirement 1. Calculate division margins in percentage terms prior to allocating foved overhead costs (Round your answers to two decimal places, XXOC) Hotel Restaurant Casino Division margin 43.87% 45,68% 4,41 % Requirement 2. Allocatie 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 hter Round dollar amounts to the nearest dollar Use 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, XXX parentheses or a minus sagn for negative amounts) Hotel Restaurant Casino Donatello Allocated food overhead costs 9,875,000 4,310.000 4.420.800 18,000,400 7.717 000 3625 400 7900 200 Operating margin Operating margin 4387% 45.68% 54415 lase hes lans, 2- Enter any number in the edit fields and then click Check Answer Clouds Check Answer o remaining 6 Parts band Windows Step by Step Solution
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