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 $11, 200 5, 400 4, 400 600 3, 400 80 1, 120 50 540 $26, 790 Revenue (000s) Square feet Rooms Assets (000s) Pine Valley Oak Glen $ 8,550 $ 12, 775 62, 735 86, 610 86 122 $ 104, 430 $ 154, 620 Mimosa $ 14, 150 4 7, 235 66 $ 81, 815 Birch Glen $ 10, 465 94, 585 174 $ 65,005 Total $ 45, 940 291, 165 448 $ 405, 870 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? 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 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.) Allocation Base Total 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.) P ine Valley Oak Glen Mimosa Birch Glen Total Allocation Base Revenue Square feet Number of rooms Assets Total cost allocated $ $