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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:

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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: 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 $10,000 5,000 4,000 600 3,000 80 1,000 50 500 $24,230 Birch Glen Total Revenue (2008) Square feet Rooms Assets (o00s) Pine Valley $ 7,750 60,660 1 86 $100,975 Oak Glen $ 11,580 83,735 122 $149,485 Mimosa $ 12,830 45,655 66 $ 79,080 $ 9,490 91,455 174 $ 62,855 $ 41,650 281,505 448 $392,395 Required: 1. Based on annual revenue, what amount of the central office costs are allocated to each resort? 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

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