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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 $12, 400 5, 800 4, 800 600 3, 800 80 1, 240 50 580 $29, 350 Revenue (000s) Square feet Rooms Assets (000s) Pine Valley Oak Glen $ 9,350 $ 13,975 89, 485 86 122 $ 107, 880 $ 159, 750 64, 805 Mimosa $ 15, 480 48, 790 66 $ 84, 510 Birch Glen $ 11, 450 97,715 174 $ 67, 155 Total $ 50, 255 300, 795 448 $ 419, 295 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 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? (Do not round intermediate calculations. Enter your answers in thousands rounded to the nearest dollar.) Allocation Base Pine Valley Oak Glen Mimosa Birch Glen Total Revenue $ 0 Square feet 0 Number of rooms 0 0 Assets Total cost allocated $ 0 $ 0 $ 0 $ 0 $ 0
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