Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Woodland Hotels Inc. operates four resorts in the heavily wooded areas of northern California. The resorts are named after the predominant trees at the resort:
Woodland Hotels Inc. 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 $ 9, 600 4, 800 3, 800 600 2,800 80 960 50 480 $ 23, 170 Pind Revenue (000s) Square feet Rooms Assets (000s) Pine Valley $ 7,350 59, 625 86 $ 99, 250 Oak Glen $ 10,985 82,350 122 $ 147,005 Mimosa $ 12, 170 4 4, 900 66 $ 77,770 Birch Glen $ 9,000 8 9, 925 174 $ 61, 800 Total $ 39, 505 276, 800 448 $385, 825 Based on annual revenue, what amount of the central office costs are allocated to each resort? calculations. Enter your answers in thousands rounded to the nearest dollar.) Pine Valley Oak Glen Mimosa Birch Glen T otal Allocated cost 0 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.) Total Allocation Base Revenue Square feet Number of rooms Assets Using the cost pool system in requirement 2, how much of the central office costs would be allocated to each resort? calculations. Enter your answers in thousands rounded to the nearest dollar) Allocation Base Pine Valley Oak Glen Mimosa Birch Glen Total Revenue Square feet Nurriber of roorris Assets Talal cosi allocated
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started