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woodiana Hotels incorporated operates tour resorts in the neaviy wooded areas of northern California. ine resorts are named after the predominant trees at the resort:
woodiana Hotels incorporated operates tour resorts in the neaviy wooded areas of northern California. ine 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: ed 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 $ 8,800 4,400 3,400 600 2,400 80 880 50 440 $ 21,050 ok t Revenue (000s) Square feet Rooms Assets (000s) Pine Valley $ 6,150 57,550 86 $ 95,795 Oak Glen $ 9,190 79,475 122 $ 141,875 Mimosa $ 10,180 43,345 66 $ 75,075 Birch Glen Total $ 7,530 $ 33,050 86,795 267,165 174 448 $ 59, 650 $ 372,395 1 nces 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, are 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? Complete this question by entering your answers in the tabs below. 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.) Revenue (000s) Square feet Rooms Assets (000s) $ 6,150 57,550 B6 $ 95,795 $ 9, 190 79,475 122 $ 141,875 $ 10,180 43,345 66 $ 75,075 $ 7,530 86,795 174 $ 59,650 $ 33,050 267,165 448 $ 372, 395 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? ed ok Complete this question by entering your answers in the tabs below. t Required 1 Required 2 Required 3 1 nces 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.) Pine Valley Oak Glen Mimosa Birch Glen Total $ 0 Allocation Base Revenue Square feet Number of rooms Assets 0 0 0 Total cost allocated $ 0 $ 0 $ 0 $ 0 $ 0 Revenue (000s) Square feet Rooms Assets (000s) Pine Valley $ 6,150 57,550 B6 $ 95,795 Oak Glen $ 9,190 79,475 122 $ 141,875 Mimosa $ 10,180 43, 345 66 $ 75, 075 Birch Glen $ 7,530 86,795 174 $ 59,650 Total $ 33,050 267,165 448 $ 372, 395 ed 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? ok Complete this question by entering your answers in the tabs below. t 1 nces 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 $ 0
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